BOSTON—In a multistate settlement with a coalition of 14 well-known legal professionals led by Attorney General Maura Healey, four national fast food franchisors will give up the use of “no-poach” agreements, which restrict the right of fast food workers to move from one franchise to every other within the same restaurant chain.
The agreements with Dunkin’, Arby’s, Five Guys, and Little Caesars settle research announced by the states in July 2018 over issues that no-poach agreements harm low-salary workers by restricting their ability to secure better-paying jobs.
“No-poach agreements make it harder for immediate meals people to take advantage of promotions and earn better living,” said Healey in an information launch. “This settlement is the main step toward ending the usage of no-poach agreements for accuracy.”
Under the settlements’ phrases, the franchisors have agreed to prevent such no-poach provisions from being in their franchise agreements and to stop enforcing any existing franchise agreements. The franchisors have additionally agreed to amend current franchise agreements to do away with no-poach provisions and to ask their franchisees to publish notices in all places to inform employees of the settlement. Finally, the franchisors will notify the legal professionals general if their franchisees try to restrict any employee from moving to every other vicinity beneath a present no-poach provision.
The legal professionals knew they started their research closing off July by sending letters to Arby’s, Burger King, Dunkin’, Five Guys, Little Caesars, Panera, Popeyes, and Wendy’s requesting documents, together with copies of franchise agreements and communications associated with no-poach provisions. According to the release, the legal professionals alleged that no-poach requirements make it difficult for workers to improve their earning potential by transferring from one activity to another or searching for a better-paying job at some different franchise location and that many employees are unaware they’re painful to those no-poach provisions.
Since the research started, Wendy’s has confirmed that it never used no-poach provisions in its franchise contracts. Investigations into Burger King, Popeyes, and Panera continue.
Workers who believe their rights have been violated in their workplace are encouraged to report a complaint here. For information about the nation’s salary and hour legal guidelines, people may call the Office’s Fair Labor Hotline at (617) 727-3465 or visit the Attorney General’s Workplace Rights website at www.Mass.Gov/ago/fairlabor for materials in several languages.
