Eight more restaurant chains commit to removing the clause from franchise contracts under the threat of a lawsuit
A new wave of major restaurant chains announced legally binding agreements to end ‘no-poach’ provisions in franchise contracts that 11 state’s attorneys general deemed unlawful last month. Applebee’s, IHOP, Little Caesar’s, Jamba Juice, SONIC Drive-In, Five Guys, Church’s Chicken, and Panera are the latest franchise brands to join the change their ways in the face of a lawsuit, joining seven others that last month agreed to end the practice nationwide.
No-poach clauses prohibit workers from switching from one franchise location to another, which opponents say reduces competition and may violate antitrust laws. “These agreements prevent experienced workers from bargaining for better positions with better salaries,” a spokesman for California AG Xavier Becerra said in a statement to the LA Times.