US: More fast food giants to stop “no-poach” clauses

Washington State Attorney General Bob Ferguson announced Monday, August 20, that eight more corporate fast-food chains will remove “no-poach” provisions from their franchise contracts nationwide. No-poach clauses put downward pressure on wages and restrict worker mobility.

As a result of Ferguson’s investigation, eight companies—Applebee’s, Church’s Chicken, Five Guys, IHOP, Jamba Juice, Little Caesars, Panera, and Sonic—will remove the language from current and future contracts and will no longer enforce no-poach provisions included in franchise agreements.

Combined, the eight companies included in Monday’s announcement have more than 15,000 locations around the country. As part of their agreements with the attorney general’s office, the restaurants will no longer enforce existing no-poach agreements, and will remove the language from future contracts.

“Businesses can’t rig the system to avoid competition,” said Ferguson. “My goal is to eliminate no-poach clauses in the fast-food industry nationwide. This is a major step forward in achieving that goal, but we’re not done. Other fast food companies that use no-poach provisions are now on the clock to accept a similar deal or face litigation from my office.”

Full Content: Law 360, The New York Times