Legal settlement ends ‘no poach’ rules used by fast-food industry

So called “no-poach contracts,” can no longer be used to prevent fast-food workers in Pennsylvania and the country from accepting a job at another franchise in the same restaurant chain.

A multistate settlement brokered by state Attorney General Josh Shapiro and 12 other state Attorneys General, ends a practice that Shapiro says hurt low-wage workers by limiting their ability to secure better paying jobs.

Letters were sent to Arby’s, Burger King, Dunkin’ Brands, Five Guys Burgers and Fries, Little Caesars, Panera Bread, Popeyes Louisiana Kitchen, and Wendy’s requesting copies of franchise agreements and communications related to no-poach provisions.

Wendy’s provided confirmation that it never used the provision in their contracts with franchisees. The other franchises who received the letters agreed to stop using the agreements

Under the terms of the settlements, the franchisors have agreed to stop including the provision in any of their franchise agreements and to stop enforcing any already in place.  Franchisees will also post notices in all locations to inform employees of the settlement.

“The priority of my office is protecting all working Pennsylvanians, especially vulnerable workers who can be exploited by fast food restaurants to make big profits,” Shapiro said. “Ending no-poach agreements is an important step in preserving the rights of fast food employees across Pennsylvania. I’m proud of the collaboration between my office and the 13 Attorneys General that have successfully fought to end this unjust practice.”

Other states participating in the case were Massachusetts, California, Iowa, Illinois, Maryland,

Minnesota, North Carolina, New Jersey, New York, Oregon, Rhode Island, and Vermont. Washington, D.C., also participated.