OLYMPIA, Wash. — Five national chains facing a lawsuit from Washington State have recently joined more than 30 other franchises who have agreed to stop using "no-poach" clauses in their franchisee agreements, according to Washington's attorney general.
The five chains, which include Batteries Plus Bulbs, Comfort Keepers, Edible Arrangements, La Quinta and Merry Maids, will no longer use the no-poach clause that prohibits workers from moving to different stores within the same chain.
“No poach clauses are wrong – and unlawful,” Washington state Attorney General Bob Ferguson said in a statement. “Millions of workers have benefited and will continue to benefit from the end of no-poach practices.”
According to the Attorney General's Office, their "no-poach" elimination efforts have resulted in 39 chains agreeing in legal documents to stop using no-poach policies at more than 95,000 locations across the U.S. Some economists have stated that no-poach practices have been shown to negatively affect workers due to the restrictions it places on employees that keep them from moving to other positions within a franchise company, the Attorney General's Office said.
The recent franchise companies to agree to no-poach policies will eliminate the clauses from their franchise contracts in Washington within 120 days and will remove the clauses nationwide as they are renewed, Ferguson's office said.