Little Caesars, Other Chains Investigated for Agreements Not to Poach Employees

Agreements not to poach employees have become increasingly prominent in recent years with many different fast food companies, including Little Caesars, Popeye’s Louisiana Kitchen, and Dunkin’ Donuts allegedly participating. Many of these companies had agreements from one franchise to another not to poach employees.

Companies that have written agreements not to poach employees from one another limit mobility in a particular industry. In fast food, it put workers at a disadvantage from being able to move to another location if they so choose.

Under a non-poaching agreement, a fast food worker who accepts a position in one location might get “stuck” there, as the agreements limited workers’ ability to accept any positions at other restaurants within the franchised company.

Fast Food Companies End Agreements

Many different fast food companies have come under fire and investigation as a result of the fast food no-poaching clauses.

Seven national fast food companies have recently agreed, under legal pressure, to eliminate their agreements not to poach employees. This news came from the Washington State Attorney General.

The chains, which include Auntie Anne’s, Cinnabon, Arby’s, Jimmy John’s, Buffalo Wild Wings and Carl’s Jr., will stop using these practices and agreements not to poach employees across the nation. McDonald’s already agreed to end these restrictions.

Prior to this, agreements required franchisee managers not to poach employees or entice employees away from other locations. These fast food franchises, in promising to avoid recruiting or hiring one another’s workers inside the same chain, prevented a worker from being able to move up to different positions by going to another franchise or to obtain better pay.

A cooperative effort among ten state attorneys general is continuing to look at agreements that are allegedly still in place among franchisees of other chains, including Little Caesars. Employees of Little Caesars franchisees may be suffering the effects of a no-poaching agreement without even realizing it.

Attorneys believe that these clauses that prohibit franchises from trying to poach employees are illegal. A variety of different no-poaching agreement lawsuits have been filed on behalf of those employees who were not able to move from one location to another.

An economist recently determined that up to 80 percent of fast food chains have agreements not to poach employees and in franchised industries across the board, about 58 percent have agreements that are very similar.

A number of different consumer and employee advocates have come forward in recent years to shed light on concerns about agreements not to poach employees, since this puts workers at a disadvantage. A majority of the workers who have discovered this practice did not know at the time when they tried to leave one franchise location and move to another that the managers and owners of those franchises had agreements not to bring on employees from the same company.

If you or someone you know has already been negatively affected by these agreements not to poach employees, a lawyer can help you understand your rights.

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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