News & Analysis as of

No-Poaching Franchisee

Sheppard Mullin Richter & Hampton LLP

DOJ and FTC Issue Antitrust Guidelines for Business Activities Affecting Workers

Four days before President Trump took office, the Department of Justice (“DOJ”) and Federal Trade Commission (“FTC”) (together, “the Agencies”) under the Biden administration released their “Antitrust Guidelines for Business...more

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

Lathrop GPM

Seventh Circuit Reverses Dismissal of Anti-Poaching Class Action Against McDonald’s

Lathrop GPM on

In an important case of first impression that drew amicus participation from the Department of Justice, the Federal Trade Commission, and the International Franchise Association, the Seventh Circuit reversed a judgment in...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

Vinson & Elkins LLP

Seventh Circuit Revives Former McDonald’s Workers’ No-Poach Suit

Vinson & Elkins LLP on

An important federal appeals court has clarified a key principle of antitrust law in a way that potentially makes it more difficult for an employer to win a motion to dismiss, and thereby avoid expensive discovery, with...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

Lewitt Hackman

Franchisor 101: All the King’s Poachers

Lewitt Hackman on

A federal appellate court held that Burger King and its franchisees may violate Section 1 of the Sherman Act (antitrust) by engaging in concerted action when entering into “no-hire” agreements. The appellate court reversed...more

Troutman Pepper Locke

Recent No-Poach Developments: Hold the Pickle, Hold the Dismissal — Eleventh Circuit Overturns Burger King's District Court...

Troutman Pepper Locke on

In early September, the Eleventh Circuit reversed the district court’s judgment for defendants Burger King Corporation, Burger King Worldwide, Inc., and their ultimate parent Restaurant Brands International, Inc....more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Eleventh Circuit Serves a Whopper of a Ruling on Franchisor’s ‘No-Poach’/‘No-Hire’ Agreement With Franchisees

​​​​​​​Over the last several years, business-to-business “no-hire” and “no-poach” agreements have come under legal attack, including through enforcement actions by the Federal Trade Commission and criminal prosecutions by the...more

Lathrop GPM

Global Franchise Regulation Update - March 2022

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New Standard Contract Language for Data Transfers Facilitates Lawful Personal Data Transfers to/from EU and U.S. - In response to the EU Court of Justice Schrems II opinion, which declared that the former EU-US Privacy...more

Stark & Stark

No-Poach Clauses in Franchise Agreements: The Saga Continues in 2022

Stark & Stark on

For the past few years, it seems franchisors have been riding a roller coaster when it comes to no-poach clauses in their franchise agreements. While for a time it seemed as though scrutiny for such clauses might be fading,...more

Lathrop GPM

The Franchise Memorandum - Issue #269

Lathrop GPM on

Two Illinois Federal Courts Deny Class Certification in Anti-Poaching Class Actions Against Franchisors - Two federal courts in Illinois have rejected motions to certify classes of employees who worked in franchised...more

Epstein Becker & Green

New York State Legislature Aims to Prohibit Use Of No-Poach and No-Rehire Clauses

Epstein Becker & Green on

Last week, the New York State Senate advanced two bills seeking to ban both “no-poach” clauses in franchise agreements and “no-rehire” clauses, which are commonly used in settlement agreements....more

Skadden, Arps, Slate, Meagher & Flom LLP

Recent Trends in No-Poach Litigation

Federal district courts around the country continue to grapple with how to analyze “no-poach” agreements — whereby two or more companies agree not to hire or recruit each other’s workers — under the antitrust laws. Beginning...more

Lathrop GPM

The Franchise Memorandum - Issue 249

Lathrop GPM on

Welcome to The Franchise Memorandum by Lathrop GPM, formerly known as The GPMemorandum. Since December 1997, The GPMemorandum has been presenting summaries of recent legal developments of interest to franchisors and companies...more

Fox Rothschild LLP

To Poach Or Not To Poach

Fox Rothschild LLP on

Franchise systems, and many licensing arrangements contain anti-poaching provisions. These provisions are being tested under the antitrust laws as being anticompetitive. This article will discuss the benefits and burdens of...more

Fox Rothschild LLP

Happy Holidays? More Challenges In Franchising

Fox Rothschild LLP on

It’s the holiday season, but franchise lawyers may find little in recent events to celebrate. The challenges just keep on coming! Most recently, we’ve been challenged by California’s AB5 legislation and Dynamex decision,...more

ArentFox Schiff

Maryland Enacts a Statute Prohibiting Non-Competes for Lower Wage Employees

ArentFox Schiff on

On May 28, 2019, the Maryland Governor permitted (without signature) the Noncompete and Conflict of Interest Clauses Act (the Act) to become law. ...more

Skadden, Arps, Slate, Meagher & Flom LLP

'Titans' of Antitrust Policy Clash Over No-Poach Agreements

Legal battles over the antitrust treatment of no-poach agreements continue to escalate with new district court decisions and new pronouncements from two “titans” of antitrust policy, the Department of Justice (DOJ) and the...more

McDermott Will & Emery

The Latest: DOJ Distinguishes ‘No-Poach’ Agreements

McDermott Will & Emery on

WHAT HAPPENED: • The Department of Justice filed a Statement of Interest in three related cases in the Eastern District of Washington yesterday dealing with alleged “no-poach” (or non-solicitation) agreements between...more

McDermott Will & Emery

US DOJ Adds Complexity to Enforcement of “No-Poach” Agreements under Antitrust Law

McDermott Will & Emery on

On Thursday, March 7, the Antitrust Division intervened in three antitrust class actions to urge the court that no-poach agreements between vertically related firms, such as between franchisor and franchisee, should be...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

Parker Poe Adams & Bernstein LLP

U.S. Justice Department Would Limit Use of Antitrust Laws to Attack ‘No-Poaching' Agreements

As previously reported in EmployNews, in recent years state attorneys general and private plaintiffs have initiated legal actions against companies that require their franchisees to sign employee “no-poaching” agreements....more

Searcy Denney Scarola Barnhart & Shipley

United States Judicial Panel on Multidistrict Litigation – January 2019 Hearing Session Preview

The next hearing session of the United States Judicial Panel on Multidistrict Litigation (“JPML”) is scheduled for January 31, 2019 in Miami, Florida. Six matters are set for oral argument to consider motions to transfer each...more

Troutman Pepper Locke

Legal Challenges to No-Poach Provisions in Franchise Agreements

Troutman Pepper Locke on

Over the last 18 months, no-poach provisions in franchise agreements have drawn considerable attention from academics, state attorneys general, politicians, and the class action plaintiffs’ bar. Originally published in...more

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