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Papa John’s Agrees to Settle Employee No-Poach Lawsuit

By  |  August 10, 2025
Papa John's

A federal judge in Louisville, Kentucky, has granted preliminary approval to a $5 million class action settlement that would resolve claims against pizza chain Papa John’s over alleged anti-competitive practices affecting its workers, according to Reuters. The settlement stems from a lawsuit filed in 2018 by employees who accused the company of unlawfully limiting job mobility between franchises through agreements that franchise owners would not recruit each other’s staff.

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    U.S. District Judge Benjamin Beaton described the proposed agreement as “fair and reasonable” in his Thursday ruling, per Reuters. The case covers roughly 400,000 current and former employees who worked at Papa John’s from 2014 to 2021. Court filings indicate that if 20% of eligible members file claims, the average payout could be around $165.

    Papa John’s has denied any wrongdoing but agreed to the settlement to avoid the uncertainty of continued litigation, according to court documents. The deal also requires the company to provide antitrust compliance training and issue notices to franchise owners stating they cannot enforce existing no-poach agreements. Furthermore, Papa John’s will refrain from including such provisions in franchise contracts for at least five years.

    Related: Judge Rejects $5 Million Settlement in Papa John’s No-Poaching Suit

    Lawyers representing the plaintiffs said they will request up to 25% of the settlement amount—about $1.25 million—for attorney fees. The court is scheduled to hold a final approval hearing on January 7 to consider any objections.

    The case, filed in the U.S. District Court for the Western District of Kentucky, is titled In re: Papa John’s Employee and Franchisee Employee Antitrust Litigation, No. 3:18-cv-00825-BJB-RSE.

    Source: Reuters