Case Details

Year Initiated/Committed

2019

Year Resolved

2019

Settlement Amount

n/a

Court

n/a

Docket Number

n/a

Lead State

CA, DC, IA, IL, MA, MD, MN, NC, NJ, NY, OR, PA, RI, VT

Participating States

CA, DC, IA, IL, MA, MD, MN, NC, NJ, NY, OR, PA, RI, VT

Defendant(s)

Five Guys Franchisor LLC

Case Description

Fourteen states investigated “no-poach†agreements (clauses, often contained in franchise agreements, which prevent workers from switching between employers of the same franchise in order to obtain a better job with a higher salary or improved working conditions). The states settled with four national fast food franchisors, Dunkin’, Arby’s, Five Guys, and Little Caesars, who agreed to cease using “no-poach†agreements that restrict the rights of fast food workers to move from one franchise to another within the same restaurant chain. Under the terms of the settlements, the franchisors will stop including no-poach provisions in any of their franchise agreements and stop enforcing any franchise agreements already in place. The franchisors have also agreed to amend existing franchise agreements to remove no-poach provisions and to ask their franchisees to post notices in all locations to inform employees of the settlement. Finally, the franchisors will notify the attorneys general if one of their franchisees tries to restrict any employee from moving to another location under an existing no-poach provision. Since the investigation began, Wendy’s provided confirmation that it never used no-poach provisions in their contracts with franchisees. Investigations into Burger King, Popeyes, and Panera continue.