Are you currently working an hourly position at a fast food restaurant, or have you worked an hourly position at a fast food restaurant within the past 4 years? Did you or any of your coworkers believe that your pay was too low? Did you have trouble getting a job at a different franchise within the same company?
If you answered yes to these questions, you may qualify to help in our investigation into fast food restaurant chains and possibly recover compensation. A number of fast food franchises have allegedly signed no-hire agreements with their parent companies saying that they will not hire employees from other franchisees that are part of the same company. As part of such agreements, franchisees are prevented from hiring and/or recruiting anyone who has worked for another franchisee within a certain period of time.
If you worked for a fast food restaurant chain, you may have been the victim of a no-hire agreement. If you were prevented from moving from one fast food restaurant chain to another that was part of the same fast food company, you may qualify to join our investigation. Fill out our form for a confidential evaluation.
OVERVIEW OF THE FAST FOOD NO-HIRE AGREEMENTS
The U.S. Antitrust Laws are federal and state laws that are meant to keep business operating honest and fairly. A number of lawsuits allege that fast food franchises are breaking the U.S. Antitrust Laws by robbing employees of labor market competition — depriving them of job opportunities, information, and the ability to use competing offers to negotiate better terms of employment.
Several major fast food restaurants include no-hire clauses in their franchisee contracts, which means that one franchisee is prevented from hiring a worker from another franchisee within the same company.
This includes restaurants such as Burger King, Pizza Hut, and others, according to a report by The New York Times. According to The New York Times, no hire agreements may be contributing to wage stagnation. It has been documented that employees at fast-food restaurants make wages that leave them below the poverty level, according to CNN.
Fast food franchises have attempted to justify the no-hire clauses based on the amount of time and money they put into training employees, however, someone who works for one fast food franchise, let’s say Arby’s for example, is going to have skills that would provide the most value to another Arby’s franchise. The no-hire clauses that fast food franchises include in their contracts prevent workers from taking advantage of their marketability.
In addition, employees claim that these no-poach agreements violate antitrust laws. This is the argument that was made in four different lawsuits filed against McDonald’s, Pizza Hut, Jimmy John’s, and Carl’s Jr.’s parent company.