News & Analysis as of

No-Poaching Enforcement Actions Franchises

Pillsbury Winthrop Shaw Pittman LLP

New DOJ–FTC Antitrust Guidelines for Business Activities Affecting Workers: Key Changes and Practical Takeaways

While the original guidelines focused primarily on per se illegal wage-fixing and no-poach agreements, the 2025 Guidelines illustrate a significant expansion in enforcement, broadening scrutiny to compensation benchmarking,...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

Bradley Arant Boult Cummings LLP

FTC Proposes Rule to Strike Noncompete Agreements Nationwide

On January 5, 2023, the Federal Trade Commission (FTC) announced a proposed new rule that would effectively prohibit employers from requiring employees to agree to noncompete clauses. The public is invited to submit comments...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

Skadden, Arps, Slate, Meagher & Flom LLP

DOJ Wades Deeper Into No-Poach Advocacy

In early February 2019, the Department of Justice (DOJ) announced its intent to file statements of interest in multiple ongoing private lawsuits to clarify how “no-poach” agreements should be evaluated under the federal...more

Skadden, Arps, Slate, Meagher & Flom LLP

No-Poach Update: DOJ Seeks to Rein In Franchise Suits

Evolving antitrust treatment of so-called “no-poach” agreements continues to offer important guidance for company counsel and human resources professionals. Over the past two years, the Department of Justice (DOJ) has...more

Lewitt Hackman

FRANCHISOR 101: Thrust Into Antitrust

Lewitt Hackman on

Jimmy John’s will face antitrust claims, after an Illinois federal judge declined to dismiss allegations in a class action. Plaintiffs claim the chain’s franchise agreement harmed competition by preventing franchisee...more

Lewitt Hackman

FRANCHISOR 101: No Poach for You

Lewitt Hackman on

Franchise agreements commonly prohibit the franchisee from soliciting or hiring workers employed by the franchisor or other franchisees. This may take the form of “no-hire” or “no-switching” clauses that prohibit hiring each...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

Troutman Pepper Locke

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

Troutman Pepper Locke on

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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