HARRISBURG (TNS)—Fast food workers in Pennsylvania and throughout the country will no longer be limited by agreements that prevent them from moving to another franchise in the same restaurant chain thanks to a multistate settlement brokered by Attorney General Josh Shapiro and 13 other Attorneys General.
Ending “no-poach agreements” with Burger King, Popeye’s and Tim Horton’s (all owned by Restaurant Brands International) is the result of an investigation started in July 2018 following concerns that these contracts hurt low-wage workers by limiting their ability to secure better paying jobs.
“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,” said Shapiro. “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.”
Under the terms of the settlements, the franchisors have agreed to stop including no-poach provisions in any of their franchise agreements and to stop enforcing such provisions already in place. The franchisors have also agreed to amend existing franchise agreements to remove no-poach provisions and to ask their franchisees to post notices in all locations to inform employees of the settlement.
The Attorneys General began their investigation in July 2018 by sending letters to Arby’s, Burger King, Dunkin’ Brands, Five Guys Burgers and Fries, Little Caesars, Panera Bread, Popeyes Louisiana Kitchen and Wendy’s requesting documents, including copies of franchise agreements and communications related to no-poach provisions.
In March 2019, the Attorneys General entered into settlements with Dunkin’, Arby’s, Five Guys, Little Caesars, and, soon thereafter, Panera, in which the restaurants agreed to cease using no-poach provisions in their franchise agreements. These franchisors have reported that all franchisees in the settling states amended their franchise agreements to remove the no-poach provisions. In the coming months, states will be visiting stores to ensure notices to employees are properly posted.
Wendy’s provided confirmation that it never used no-poach provisions in their contracts with franchisees.
The coalition, led by Massachusetts Attorney General Healey, includes the Attorneys General from California, District of Columbia, Iowa, Illinois, Maryland, Minnesota, North Carolina, New Jersey, New York, Oregon, Rhode Island, and Vermont.
