Eight Fast-Food Companies Probed by State AGs Over Employee Agreements -- Update
10 July 2018 - 06:41AM
Dow Jones News
By Maria Armental
Attorneys general from 10 states and the District of Columbia
are investigating into "no-poach" agreements in the fast-food
industry.
Such practices typically restrict workers from applying for jobs
at other locations within certain areas or timeframes.
The attorneys general said Monday they have requested
information, including franchise agreements and other related
documents, from national chains Arby's, Burger King, Dunkin'
Donuts, Five Guys Burgers and Fries, Little Caesars, Panera Bread,
Popeyes Louisiana Kitchen and Wendy's.
In a statement, Wendy's said it does not impose any restrictions
that prohibit franchisees from hiring or soliciting employees from
other franchisees. "We do not have an 'anti-poaching' provision in
our franchise agreement," it added.
The other companies weren't immediately available for
comment.
"Our goal through this action is to reduce barriers and empower
workers to secure better-paying and higher-skill jobs,"
Massachusetts Attorney General Maura Healey said in a statement.
Ms. Healey is leading the investigation and is joined by attorneys
general from the District of Columbia, California, Illinois,
Maryland, Minnesota, New Jersey, New York, Oregon, Pennsylvania and
Rhode Island.
As part of the investigation, the attorneys general have asked
for documents showing the business rationale and any related
communications, including training provided to franchisees or store
managers regarding the agreements, and questioned what categories
of workers have been subject to such restrictions, including job
titles and hourly wages, the geographic or timing extent of the
agreements and whether the workers were aware of the
restrictions.
Ms. Healey's Fair Labor Division has also interviewed workers
believed to have been affected by the agreements, including a
McDonald's worker in Iowa.
Several lawsuits have been filed against fast-food companies
challenging such agreements, including one filed last year by a
Florida woman who worked as a mid-level McDonald's manager and
challenged a McDonald's no-poach policy that prohibited workers
like her to apply for a job at another McDonald's location within
six months of having worked for another McDonald's.
That case, seeking class-action status, is pending in Illinois
federal court.
McDonald's wasn't immediately available for comment.
"Many workers only learn these agreements exist when they are
denied the chance to advance to a better job, earn more money or
obtain family-friendly schedule options," Pennsylvania Attorney
General Josh Shapiro said.
The attorneys general are also investigating whether any of
those franchisees been a party to litigation or binding arbitration
involving the no-poach agreements and what the resolution was.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
July 09, 2018 16:26 ET (20:26 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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