Judge Allows Burger King Employee Antitrust Case to Proceed

A federal judge in Miami has ruled that Burger King must contend with a lawsuit claiming the fast food chain unlawfully limited employee movement and suppressed wages across its franchise network. The decision marks a significant development in a case that has been ongoing since 2018.

According to Reuters, U.S. District Judge Jose Martinez determined that the plaintiffs, a group of current and former employees, presented sufficient factual allegations to move forward with their proposed class action lawsuit. The complaint accuses Burger King of engaging in anti-competitive behavior by enforcing so-called “no-hire” or “no-poach” agreements among its thousands of U.S. franchisees.

These agreements, as outlined in the court documents, allegedly prevented individual franchises from hiring workers who had recently been employed at another Burger King location, typically within a six-month period. The plaintiffs argue that such practices curtailed job mobility and held down wages in violation of federal antitrust laws.

Per Reuters, the employees involved in the case worked at Burger King restaurants in Illinois and other states, with claims dating back as far as 2010. They are pursuing unspecified damages and seeking class-action status to represent thousands of similarly situated workers.

Burger King has previously denied any wrongdoing and maintained that the plaintiffs failed to demonstrate a direct connection between the no-hire policy and wage suppression. In seeking dismissal of the case, the company contended that there was no concrete evidence showing the agreements affected compensation.

However, Judge Martinez disagreed, stating that the allegations plausibly suggest the no-hire provisions constituted an “unreasonable” restriction on the labor market, according to Reuters. His ruling allows the case to proceed into the discovery and litigation phase.

The lawsuit—Jarvis Arrington et al v. Burger King Worldwide et al, filed in the Southern District of Florida—mirrors similar legal efforts against other major fast food corporations. Notably, in 2024, the U.S. Supreme Court declined to hear a case involving McDonald’s, which faced parallel accusations over its franchise hiring practices.

Source: Reuters