On March 18, 2024, the Supreme Court of the United States (the “Supreme Court”) denied a petition for writ of certiorari brought by McDonald’s USA, LLC (“McDonald’s”).
McDonald’s had asked the Supreme Court to review a decision by the 7th Circuit Court of Appeals to allow a class action lawsuit claiming that it violated antitrust laws by prohibiting franchises from poaching employees from other McDonald’s restaurants. The lawsuit alleged that the no-poach provisions artificially reduced workers’ wages by limiting their ability to move from one franchise to another. McDonald’s petition urged the Supreme Court to overrule the appellate court because its decision “turns back the clock on antitrust analysis.”
The Supreme Court’s decision means that the lawsuit against McDonald’s may proceed, and that conflicts of interpretation regarding federal antitrust law and Section 1 of the Sherman Act will not be resolved at this time. Franchisors and franchisees should watch the case with interest.
