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No-Poaching Franchises Hiring & Firing

McCarter & English, LLP

Antitrust Guidelines for Worker-Related Business Practices: How to Stay on the Right Side of Antitrust Hiring Laws During the...

The Department of Justice Antitrust Division (DOJ) and the Federal Trade Commission (FTC) (together, the Agencies) issued Antitrust Guidelines for Business Activities Affecting Workers (2025 Guidelines) in January. The 2025...more

Patterson Belknap Webb & Tyler LLP

Seventh Circuit Rescues McDonald’s Workers’ Challenge to No-Poach Clause

The Seventh Circuit recently revived an antitrust challenge to a clause in McDonald’s franchise agreements barring franchises from poaching other franchises’ employees. (See our previous coverage of antitrust challenges to...more

Quarles & Brady LLP

Seventh Circuit Rejects Dismissal of Franchisee No-Poach Clause Challenge

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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 Locke

No-Poach Franchise Case Dismissed Under Single-Entity Rule

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Are franchisees dependent offshoots of their franchisors, or are they standalone businesses capable of independent decision-making?...more

Fox Rothschild LLP

No-Poach Provision: The Latest Cause Of Worry To Franchise Systems

Fox Rothschild LLP on

The recent antitrust attacks on no-poach clauses encourage insomnia among franchise lawyers. But is the attack serious or just a flash in the pan, soon to be extinguished? The insomnia began in the tech industry, where...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

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

Foley & Lardner LLP

Antitrust Scrutiny of No-Poaching Agreements Continues to Pick Up Steam

Foley & Lardner LLP on

To most people, “poaching” is a bad thing, connoting a mix of elephant hunting and mediocre eggs. But in labor and employment—where “poaching” means recruiting away another employer’s talent—antitrust regulators, legislators,...more

Jackson Lewis P.C.

State Attorneys General Step Up Antitrust Probes Of Franchise Industry Hiring Practices

Jackson Lewis P.C. on

In the midst of a federal effort to ramp up antitrust prosecutions of companies agreeing not to recruit or hire each other’s employees special scrutiny – and criticism – has been directed toward the use of no-poach agreements...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

Shumaker, Loop & Kendrick, LLP

Employee ‘No Poaching’ Agreements Meet the Antitrust Laws: Protection of Employees in the New Economy

For centuries employers have maintained a strong interest in trying to protect their most valuable asset, their key employees, from solicitation by and loss to other employers, especially competitors. As a result, “no...more

Fisher Phillips

States Look for New Angle to Fight No-Poach Agreements

Fisher Phillips on

Attorneys general in ten states and the District of Columbia have recently launched an investigation into the employment practices of eight fast-food franchises. The group sent a joint letter to the companies requesting...more

Troutman Pepper Locke

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

Seven Fast Food Franchisors Agree To Stop Using “No Poach” Agreements Just Days After Announcement of State Attorney General...

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We reported last week that the attorneys generals of ten states are investigating several fast food franchisors for their use of so-called “no poach” provisions in their franchise agreements. ...more

Seyfarth Shaw LLP

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

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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

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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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