By Sarah Markley  |  August 17, 2018

Category: Labor & Employment

Fast Food Franchises Agree to Do Away with Non Poaching ClauseFast food employees at Arby’s and six other franchises stand to gain now that certain chains have agreed to remove the non poaching clause from their franchise agreements. The new agreements should help workers maintain better wages and give them access to better offers of employment.

What is a Non Poaching Clause?

Some companies, including fast food restaurants such as Arby’s, McDonald’s and Jimmy John’s, have required their franchisees not to “poach” workers from other franchises. A non poaching clause is an agreement that one franchise will not hire a worker from another franchise within the same company.

When a non poaching clause is in effect, for example, a manager from one Arby’s would not be able to hire an employee from another Arby’s. Wages and employment offers are much less competitive when a non poaching clause is in place.

This ends up hurting the employee by keeping wages lower and not allowing the employee to seek out better hours or work environments.

Fast Food Non Poaching Clause Investigated

This fast food non poaching clause practice has recently been under investigation by the Pennsylvania and New Jersey attorneys general, according to a Philadelphia Inquirer article.

Allegedly, seven fast food chains including Arby’s, McDonald’s, Jimmy John’s, Buffalo Wild Wings, Carl’s Jr., Auntie Anne’s, and Cinnabon have agreed to remove their non poaching clauses from nationwide franchise agreements. Many see this as a boost for workers who would like to see more competitive wages and better working arrangements.

Arby’s has agreed to stop the practice of employing a non poaching clause in their franchise agreements after receiving a letter from the Pennsylvania attorney general, Josh Shapiro. Reportedly, Arby’s was the only one of eight companies that received the letter that ended up agreeing to drop the practice.

In a statement, Shapiro said, “When I sent a letter this week to eight national fast-food franchises, seeking information about ‘no-poach’ clauses in their employment agreements, I did it to force change in corporate behavior and end this practice harming Pennsylvania workers.”

Shapiro also said that having a non poaching clause in a franchise agreement is an unfair exploitation of low wage working men and women. The letter that Shapiro sent to the fast food chains which include Burger King, Wendy’s, Five Guys, Little Caesars, Panera, Dunkin’ Donuts, and Popeye’s Louisiana Kitchen claimed that 8 out of 10 fast food chains have a non poaching clause in their franchise agreements.

He also said that a lot of fast food employees only find out that a non poaching clause exists when they attempt to try to change jobs to earn more money or find a more family-friendly schedule at another franchise.

Other legislators have deemed the practice of including a non poaching clause in their franchise agreements as “antidemocratic” and hurtful of workers.

If you believe you have been the victim of a non poaching clause and have been denied better wages or a better working environment, you may benefit from speaking with an experienced attorney. You may be eligible to file legal action.

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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