Investigation Opens for ‘No-Poach’ Agreements at Fast Food Chains

Lawndale News Chicago's Bilingual Newspaper - Business

Lawndale News Chicago's Bilingual Newspaper - Business

Attorney General Lisa Madigan, along with ten other attorneys general, sent a letter to eight national fast food franchisors about so-called “no-poach” or “no-hire” agreements in franchise contracts that restrict a franchisee’s ability to recruit or hire employees of another franchisee of the same chain. Prompted by concerns that these agreements hurt low-wage workers and limit their ability to get better jobs, Madigan and the other attorneys general have launched an investigation into the practice. Madigan and the other attorneys general said in their letter that no-poach provisions make it difficult for workers to improve their wages by moving from one job to another or seeking a higher-paying job at another franchise location and that many workers are unaware they are subject to no-poach provisions.  According to Madigan’s letter, 58 percent of major franchisors have no-poach provisions in their franchise agreements, and the number is even higher, at 80 percent, for fast food franchisors. Madigan also urged anyone in Illinois who believes they may have been impacted by these practices to contact her Workplace Rights Bureau at 1.844.740.5076.

Comments are closed.