8 Franchisors Halt ‘No-Poach’ Hiring Policy
A report last year by two Princeton economists, stating that no-poach clauses could lock workers into low-wage jobs, caught the attention of the Washington State attorney general. Now Applebee’s, Church’s Chicken, Five Guys, IHOP, Jamba Juice, Little Caesars, Panera Bread and Sonic have just concluded agreements with his office to cease the previously widespread practice—not just in the state, but nationwide. Earlier in the year Arby's, Carl's Jr. and McDonald's made their own agreements with the Washington state AG to drop their no-poach clauses, also nationwide.
Employees at 15,000 U.S. restaurant locations just got more latitude in changing jobs and possibly even gaining promotions. Eight chains agreed this week to stop so-called "no-poaching" agreements that ultimately limited employees' rights to leave a job with one franchisee to work for another franchisee within the same chain. Among those eight chains involved in this week's action, are two QSRs — Church's and Sonic chains — and one pizza chain, Little Caesars, according to the New York Times.
Fair labor advocates say the no-poach practices effectively kept wages low for some of our economy's lowest-paid workers anyway because the clauses prevented workers from moving to a location with a better job, shift or even more preferable management. The no-poach clauses were part of their contracts with franchisees. [QSR Web]