Attorney General Raoul Announces Settlements with Four Fast Food Chains

Lawndale News Chicago's Bilingual Newspaper - Business

Lawndale News Chicago's Bilingual Newspaper - Business

Attorney General Kwame Raoul, as part of a coalition of 14 attorneys general, announced settlements under which four national fast food franchisors will cease using “no-poach” agreements, which restrict the rights of fast food workers to change jobs from one franchise to another within the same restaurant chain.  The agreements entered Tuesday with Dunkin’, Arby’s, Five Guys, and Little Caesars settle an investigation announced by the states in July 2018 over concerns that no-poach agreements hurt low-wage workers by limiting their ability to secure better paying jobs. Under the terms of the settlements, the franchisors have agreed to stop including no-poach provisions in any of their franchise agreements and to stop enforcing any franchise agreements already in place. Illinois and other state attorneys general launched an investigation last July by sending letters to Arby’s, Burger King, Dunkin’ Brands, Five Guys Burgers and Fries, Little Caesar, Panera Bread, Popeyes Louisiana Kitchen, and Wendy’s requesting documents, including copies of franchise agreements and communications related to no-poach provisions. Since the investigation began, Wendy’s announced that it will no longer use no-poach provisions in contracts with franchisees. Investigations into Burger King, Popeyes, and Panera are ongoing. Raoul also urged anyone in Illinois who believes they may have been impacted by these practices to contact his office at 1-844-740-5076.

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