October 23, 2018
A former Burger King cook alleges the chain's no-poach agreement hurt his chances of getting higher-paying work and is aiming to get all current and former employees, of the last eight years, to join a class action lawsuit, according to Forbes.
Jarvis Arrington, who worked at a Chicago location of the chain, filed suit to certify a class of employees at Burger King against Burger King Corp. and Burger King Worldwide Inc. Burger King is among many chains that had or have so-called "anti-poaching provisions" that bar a brand's franchisees from hiring away another franchisee's employees.
Arrington said that while he was being paid $10 an hour at one location, he tried to obtain higher-paying work at another BK location, but was told he needed approval. He said he left the chain after he failed to hear any response concerning the potential move.
Such "no-poach" agreements have become the focus of a lot of investigations this year, including a Washington State Attorney General's threat of a suit over the clauses which ultimately resulted in 15 franchisors deleting no-poach provisions. Forbes reported 11 attorney generals are investigating franchisor use of the provisions and four cases are also seeking to form a class action.
U.S. Justice Department Antitrust Division Assistant Attorney General Makan Delrahim said the division is investigating those agreements and "a nearly ubiquitous element of corporate conduct," according to Forbes.