OLYMPIA — Fifty corporate chains with more than 100,000 locations throughout the country have agreed to do away with "no-poach" clauses in their franchise agreements which prevent employees from moving to other stores within the chain, according to the Washington state Attorney General's Office.
Faced with a lawsuit from the state of Washington, a total of 50 corporate chains that include Bonefish Grill, Carrabba's Italian Grill, Management Recruiters International and Outback Steakhouse, will remove the no-poach clauses in agreements between franchise owners and corporate offices, the Attorney General's Office said. The clauses keep employees from working at franchise locations within the chain, even for higher paying jobs.
“No-poach clauses create a rigged system where workers lose,” Washington Attorney General Bob Ferguson said in a statement. “Thanks to my excellent legal team, 50 large corporations and counting have eliminated no-poach clauses nationwide to avoid a lawsuit from my office. This impacts more than 100,000 locations and benefits millions of workers.”
To date, one lawsuit by the Attorney General's Office relating to no-poach clauses remains against Jersey Mikes, which has not agreed to remove the clauses from their franchise agreements, Ferguson's office said.