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Fast food chains agree to end 'no-poach' clauses in franchise agreements

By Marian Johns | Mar 20, 2019

ALBANY, N.Y. (Legal Newsline) — Four national fast food franchisors - Dunkin' Donuts, Arby's, Five Guys and Little Caesars - have reached a settlement with 13 state attorneys general and have agreed to stop the use of "no-poach" agreements. 

According to a New York Attorney General's Office March 12 news release, the no-poach agreements "restrict the rights" of workers in the restaurant chain from being able to move from one franchise to another and limits low-wage employees' opportunities to gain higher paying positions. 

“Whether you’re making pizzas or making cars, everyone has the right to seek better opportunities. No-poach agreements are inherently unfair, and restrict the ability of low wage fast food workers to obtain higher-paying jobs,” New York Attorney General Letitia James said in a statement. 

“My office will continue to work with other state attorneys general to ensure the workers at other national chains are not unnecessarily barred from opportunities for career and financial growth.” 

The settlement includes the food franchisors taking away the provisions in their franchise agreements as well as amend any current franchise agreements to remove a no-poach clause.

The coalition in the settlement includes the attorneys general from Massachusetts, California, District of Columbia, Iowa, Illinois, Maryland, Minnesota, North Carolina, New Jersey, New York, Pennsylvania, Rhode Island and Vermont. 

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