A PYMNTS Company

US: Suit says Burger King’s “no poaching” rule held down wages

By  |  October 23, 2018

Burger King workers have been denied pay raises and opportunities for advancement because the fast-food giant illegally required franchise owners to agree not to hire each other’s workers during their employment or for six months afterward, a federal lawsuit charges.

The “no hire” and “no solicitation” rules have been included in standard franchise agreements since at least 2010, according to the suit filed in early October in US District Court in Miami, reported Forbes.

The suit seeks class-action status on behalf of all US Burger King workers, past and present, since 2010. It names Burger King and Burger King Worldwide, both headquartered in Miami, as defendants.

Jarvis Arrington, a former line cook at a Chicago-area Burger King restaurant, is the lead plaintiff. Arrington was earning US$10 an hour when he attempted “to increase his pay rate and better his working conditions” by trying and failing to get a job at another Burger King restaurant in Chicago, the suit states.

After being told his transfer would need to be approved, he did not hear back from the restaurant to which he had applied, and sought employment outside of Burger King, the suit stated.

Full Content: Forbes

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.