Fast Food Chains Remove Non Poaching Clause from Franchise Agreements

A number of major fast food chains, including McDonald’s, have agreed to end to their practice of having a non poaching clause within their individual brands.

These no poaching clauses have caused problems for countless employees, as they prevent them from moving to different jobs within the same brand, which in turns limits their earning capacity. As low-paid as fast food restaurant workers often already are, this can be a major financial hindrance.

What is a Non Poaching Clause?

A non poaching clause means that two or more employers have agreed not to hire each other’s employees, essentially meaning that employees cannot be “poached” away from other companies. Many fast food franchisors have included a non poaching clause in their franchise agreements, forbidding franchisees from hiring away each others’ employees. These agreements, sometimes known as an anti-poaching clause, can have a serious effect on the wages and job opportunities offered to workers.

Companies that have agreed to a non poaching clause may not be able to cold-call, target, or actively recruit the other company’s employees. But under antitrust laws, a fast food chain’s non poaching clause may actually be illegal. In some cases, the Department of Justice says, it would prosecute a non poaching clause case criminally.

Even within a particular franchise, such as a fast food chain, individual stores may be unable to hire employees from other stores under a non poaching clause. For example, an employee that worked at one McDonald’s would not be allowed to be hired at another McDonald’s, preventing them from lateral or upward movement within the company. This can mean that employees are stuck in low-paying jobs with less upward mobility, forcing them to miss out on promotions, better benefits, or even something as simple as an easier commute.

Employees are also better able to move upward in their industry if they are able to move stores and positions and if businesses have the 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. Recently, nearly two dozen fast food businesses have agreed to stop using a non poaching clause, including McDonald’s, Papa John’s, Burger King, and others– thanks to efforts by Washington state’s attorney general’s office.

Filing a Non Poaching Clause Lawsuit

A number of lawsuits have been leveled against fast food franchises for participating in a non poaching clause, leading some companies to back out and agree to stop.

If you have been affected by a non poaching clause 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.

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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