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Fast-Food Industry Antitrust Provisions

Lathrop GPM

Kentucky Federal Court Questions Proposed $5 Million Settlement in Anti-poaching Class Action

Lathrop GPM on

Refusing to rubber-stamp a proposed $5 million anti-poaching class action settlement, a federal court in Kentucky has directed the plaintiff to provide additional information to allow proper consideration of the factors...more

Troutman Pepper

Seventh Circuit Revives McDonald's Employee No-Poach Litigation

Troutman Pepper on

In June of 2022, McDonald’s obtained a judgment on the pleadings, ending antitrust litigation challenging the legality of the no-hire restraints it previously included in its franchise agreements. More than a year later, the...more

Manatt, Phelps & Phillips, LLP

Fresh Off the Grill: No-Poach Agreements May Lead to Per Se Antitrust Liability, Says 7th Circuit

Introduction - No-poach agreements, wherein companies agree not to solicit or hire employees away from a competitor, have been targeted by the White House, the Federal Trade Commission (FTC) and the Antitrust Division....more

Quarles & Brady LLP

Seventh Circuit Rejects Dismissal of Franchisee No-Poach Clause Challenge

Quarles & Brady LLP on

In Deslandes v. McDonald’s USA LLC, issued August 25, 2023, the U.S. Court of Appeals for the Seventh Circuit overturned the dismissal of antitrust claims that challenged no-poach clauses in franchise agreements....more

Bilzin Sumberg

Eleventh Circuit Revives Putative Class Action Against Burger King for Violation of Federal Antitrust Laws Based on No-Poaching...

Bilzin Sumberg on

Arrington v. Burger King Worldwide, Inc., No. 20-13561 (11th Cir. Aug. 31, 2022) – In October 2018, a former line cook of a Burger King franchise restaurant in Illinois, filed a class action complaint in the District Court...more

Perkins Coie

Antitrust Challenge to McDonald’s No-Poach Restriction Evaluated Under the Rule of Reason

Perkins Coie on

A federal judge in the U.S. District Court for the Northern District of Illinois has held that an antitrust challenge to a “hiring restriction [that] prevented” plaintiff employees “from taking a better-paying position with a...more

Troutman Pepper

Fast-Food Chains Agree to End Franchise No-Poach Restrictions

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In order to avoid a lawsuit by the Washington State Attorney General, seven fast-food chains with store locations nationwide agreed to no longer enforce “no-poach/no-hire” provisions in their franchise agreements and to...more

Seyfarth Shaw LLP

State Attorneys General Investigate Fast Food Franchisor “No Poach” Agreements

Seyfarth Shaw LLP on

The Attorneys General of ten states are investigating fast food franchisors for their alleged use of “no poach” provisions in their franchise agreements, according to a press release by the New Jersey Attorney General’s...more

Polsinelli

Anti-Poaching Provisions in Franchise Agreements Are Drawing Increased Scrutiny

Polsinelli on

Franchise agreements often contain provisions prohibiting the franchisee from soliciting or hiring workers employed by the franchisor or other franchisees. Such “anti-poaching” agreements have recently come under increased...more

Troutman Pepper

No-Poach Agreements Targeted by Plaintiffs, Enforcement Agencies and Senators

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Agreements among companies to not hire each other’s workers are more risky than ever. The DOJ’s Assistant Attorney General for the Antitrust Division, Makan Delrahim, stated on January 19 that the division has criminal cases...more

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