Burger King, Other Chains Investigated for Prohibiting Employee Poaching

Many fast food chains have made a practice of requiring their franchisees to refrain from engaging in employee poaching. Essentially, this means that the franchisees agree not to “steal” or “poach” an employee from each other.

These agreements, also known as no-poaching clauses, can have a serious effect on the wages and job opportunities offered to workers. Indeed, while the phrase employee poaching may sound negative, it’s when companies enter into non poaching agreements that workers are often left unable to make competitive wages or climb the ladder.

Recently, some fast food chains have agreed to stop using these no employee poaching agreements, while other chains like Burger King continue to be investigated.

Basics of a Non Employee Poaching Agreement

Essentially, a no employee poaching agreement is a method of making sure that franchisees within a chain aren’t competing for employees. Companies may enter into an employee no poaching agreement to make sure that other companies won’t try to hire their employees out from under them.

But for employees, being able to move around in the industry can help ensure they are paid their maximum wages, or that they can move to another company that will pay them what they deserve. Employees are also better able to move upward in their industry if they are able to move companies and if businesses have incentive to reward employees with higher wages or promotions.

When companies engage in these kinds of agreements, their employees may be stuck with below-market wages, lack of market competition, and less opportunity to bargain for better wages. Fortunately, there are antitrust laws meant to protect employees from this kind of anti-poaching agreement.

Employee poaching investigations have been launched in states all across the country.

Chains Agree to Stop Non Employee Poaching Agreements

In the backlash over non employee poaching agreements, a number of fast food companies have already agreed to stop with these clauses. Chain restaurants that have agreed not to do this anymore include McDonald’s, Applebee’s, Panera Bread, Arby’s, and more.

However, as of yet, Burger King is not one of them. Indeed, there are still several major fast food chains that are under investigation for these non employee poaching agreements, including Burger King, Dunkin’ Donuts, Five Guys, Little Caesars, Popeyes, and Wendy’s.

Filing a Non Employee Poaching Lawsuit

A number of employee rights lawsuits have been filed against fast food franchises for participating in such non-poaching agreements, leading some companies to back out and agree to stop.

If you have been affected by an no employee poaching agreement at Burger King or another 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.