The attorneys general are reviewing franchise agreements for 8 foodservice chains suspected of enacting illegal no-poach provisions
Fast Casual is reporting that 11 U.S. states attorneys general are reviewing 8 major foodservice chains for suspicion of entering into illegal no-poach agreements.
Little Caesars, Arby’s Burger King, Dunkin’ Donuts, Popeyes, Wendy’s Five Guys Burgers and Fries and Panera Bread each received letters from the GAs asking them to reveal any details regarding the existence of no-poach agreements, where in a franchise prohibits workers from switching from one franchise location to another. The agreements violate antitrust laws by reducing competition and compromising the incentive for a business to provide the best opportunity for its employees.
“By limiting potential job opportunities, these agreements may restrict employees' ability to improve their earning potential and the economic security of their families," Reuters quoted the attorneys general's letter as saying.
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