Domino’s No Poaching Employees Clause May Be Hidden from Employees

Companies like Domino’s often come to agreements behind-the-scenes that affect workers but remain carefully hidden from them. One of those agreements is the no poaching employees clause which prevents one franchise from recruiting employees from another franchise for their better location, working hours, pay, or benefits under the same brand.

The no poaching employees clause came into existence because former employees of a company often do recruit the best performing among former co-workers and subordinates to their own or a similar business upon leaving.

Making an employee sign a no poaching employees clause contract as a condition of employment at the outset reduces this wage, hour, and benefit competition and puts corporations in the driver’s seat rather than workers. It lowers the labor costs among franchisees of a company like Domino’s, and thus companies are attracted to these arrangements—even on an informal basis.

According to an online article published recently by Vice, the practice of establishing the no poaching employees clause has existed for many decades and until it was challenged in a civil lawsuit in 2015 between Google and Intel, was commonplace in the tech industry.

Toying with Competition

Because these no poaching clauses pit the worker against corporations, more and more states are refusing to enforce the contracts even if an employee has knowingly or unknowingly signed one. This is an important thing to know. The state of California doesn’t recognize them legally, and the states of Hawaii and New Mexico disallow them in high-tech and health-care fields respectively. Three other states have begun the process of grossly limiting their legal weight.

Current Investigations

Currently being investigated are the no poaching employees clause frequently used by Domino’s and other fast food chains to keep employees from moving from one franchise to another. Ten different states plus the District of Columbia are actively scrutinizing certain fast food restaurant chains through their respective state attorneys general offices. According to a source in the Vice article, four out of every five chains have these agreements which cause the opportunity for advancement to dwindle and wages to stagnate.

Some of the companies that are suspected of using these agreements include:

• Arby’s
• Burger King
• Domino’s
• Dunkin’ Donuts
• Five Guys Burgers and Fries
• Jimmy John’s
• Little Caesars
• McDonald’s
• Panera
• Papa John’s
• Pizza Hut
• Popeye’s Louisiana Kitchen
• Wendy’s

Concurrently with this investigation, a bill has been introduced by a Massachusetts Senator and a New Jersey Senator that would ban these agreements nationally. Believing that they are at the root of wages which have barely kept pace with the rate of inflation for the last forty years, these senators hope to pass the bill that would prevent corporations from engaging in them.

If you or a loved one believe they have been the victim of a no poach employee agreement with a franchised fast food chain, you may be able to join a class action lawsuit investigation currently underway.

Join a Free Fast Food Employee Poaching Class Action Lawsuit Investigation

If you work for Arby’s, Burger King, Domino’s, Dunkin’ Donuts, Five Guys Burgers and Fries, Jimmy John’s, Little Caesars, McDonald’s, Panera, Papa John’s, Pizza Hut, Popeyes Louisiana Kitchen, or Wendy’s and were prevented from moving to a different franchise that is part of the same company, you may have been the victim of a no-poach agreement. If so, you may qualify to participate in this employee poaching class action lawsuit investigation.

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