Fast Food Employee Non Poaching Agreements Can Harm Workers

Some major fast food companies may be participating in employee non poaching agreements, which can have a serious effect on the wages offered to workers as well as their ability to climb the corporate ladder or get jobs at other fast food companies.

A number of fast food companies are currently under investigation for participating in these kinds of employee non poaching agreements, including major chains like Burger King, Arby’s, McDonald’s, and Pizza Hut. Other fast food restaurants have been included as well.

While an employee non poaching clause could benefit the company itself, it could cause problems for the employees affected by it—and they may not even know it’s happening. Indeed, workers affected in a possible employee non poaching agreement may find themselves unable to find jobs at other companies within the same franchise in a certain period of time or may find that they are unable to receive better pay or move up the ladder.

What is an Employee Non poaching Agreement?

Essentially, an employee non poaching agreement is a method of making sure that companies within an industry aren’t competing for employees—or, in the case of such agreements by fast food franchises, within the same company. Companies like Burger King may enter into an employee non 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 the incentive to reward employees with higher wages or promotions.

According to a report from The New York Times, “Some of fast-food’s biggest names, including Burger King, Carl’s Jr., Pizza Hut and, until recently, McDonald’s, prohibited franchises from hiring workers away from one another, preventing, for example, one Pizza Hut from hiring employees from another.”

An employee non poaching agreement can not only prevent employees from finding new jobs, but also contribute to wage stagnation, limiting them from receiving better pay—and employees at fast food restaurants are already paid very little, leaving many below the poverty level. Indeed, the federal minimum wage has been sitting at $7.25 since 2009.

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.

Filing an Employee Non Poaching Lawsuit

A number of lawsuits have been leveled against fast food franchises for participating in such non poaching agreements, including the parent company of McDonald’s.

If you have been affected by an employee non poaching agreement at Burger King or another fast food company, you may be able to join a free class action lawsuit investigation. An employee non poaching agreement lawsuit can help recover compensation and damages that non poaching laws may have incurred for employees.

Join a Free Fast Food Employee Poaching Class Action Lawsuit Investigation

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