Domino’s No Poaching Agreement Challenged by Employees

A class action lawsuit has been filed against the pizza company Domino’s, alleging that the company created a Domino’s no poaching agreement that hurt its employees.

The plaintiff who filed the suit, Harley B., alleges that there was a Domino’s no poaching agreement between the company’s various franchises that hamstrung employees’ career mobility and kept their wages down.

Most Domino’s stores—93 percent, or 5,464 of them—are franchises, independently owned and operated stores which could be subject to such a no poaching agreement.

Harley filed his lawsuit on behalf of not just himself, but also any other Domino’s employees in a similar situation who have been affected by the Domino’s no poaching agreement. The proposed Class Members include current and former employees of Domino’s—specifically, those who were employed at one of the company’s franchise restaurants.

According to the lawsuit, the company instigated a Domino’s no poaching agreement between its franchises that would suppress the wages of its employees, as well as their employment opportunities. For a group of workers who are already paid very little—fast-food is a notoriously low-paying industry—these limitations can have serious effects.

Harley says that in part, the Domino’s franchise agreements read that franchisees would not “directly or indirectly, solicit or employ any person who is employed by [Domino’s], by any entity controlled by or affiliated with [Domino’s] or by any other of our franchisees, nor will you induce or attempt to induce any of these people to leave their employment without the prior written consent of their employees. We agree that we will not induce or attempt to induce any of your employees to leave their employment with you and become employed with us or our affiliated without your consent.”

This means that, for example, one Domino’s franchisee would refuse to hire an employee that had worked at another Domino’s franchisee, which would prevent the employee from moving upward or even laterally within the same company.

Each franchisee signed such an agreement dating back to at least 2013, the lawsuit claims. But according to the lawsuit, the Domino’s no poaching agreement is “an unreasonable restraint of trade.” Fortunately, there are antitrust laws in place that are meant to protect employees from these kinds of agreements.

Harley filed his Domino’s no poaching agreement lawsuit on Oct. 15, 2018, in the U.S. District Court for the Eastern District of Michigan.

Filing a Fast Food No Poaching Agreement Lawsuit

Since the backlash over employee no poaching agreements began, some fast-food companies have agreed to stop using a no poaching agreement. These companies include Papa John’s, Arby’s, and Jimmy John’s, among others.

A number of lawsuits have been leveled against fast food franchises for participating in a no poaching agreement, leading some companies to back out and agree to stop.

If you have been affected by a no poaching agreement at a fast food company, you may be able to join a free class action lawsuit investigation. A lawsuit can help recover compensation and damages that these agreements may have incurred for employees.

The Domino’s No Poaching Agreement Lawsuit is Case No. 2:18-cv-13207-VAR-DRG, in the U.S. District Court for the Eastern District of Michigan.

Join a Free Fast Food Employee Poaching Class Action Lawsuit Investigation

If you work for McDonald’s, Jimmy John’s, Pizza Hut, Little Caesars, Papa John’s, Domino’s, Burger King or Arby’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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