Corporate fast-food chains to end no-poach provisions in US

17th July 2018 (Last Updated July 17th, 2018 13:35)

US Attorney General Bob Ferguson has revealed that seven major restaurant chains in the country have agreed to immediately stop no-poach provisions.

Corporate fast-food chains to end no-poach provisions in US
Seven major restaurant chains including McDonald’s to immediately stop ‘no-poach’ provisions. Credit: McDonald’s Corporation.

US Attorney General Bob Ferguson has revealed that seven major restaurant chains in the country have agreed to immediately stop no-poach provisions.

According to Ferguson, these agreements will restrict worker mobility and prevent workers from moving among these companies’ franchise locations.

The restaurants include Arby’s, Auntie Anne’s, Buffalo Wild Wings, Carl’s Jr, Cinnabon, Jimmy John’s and McDonald’s.

The fast food chains will not enforce provisions included in franchise agreements to stop workers from moving to potentially better positions and wages and will not repeat them in future contracts.

“Companies must compete for workers just like they compete for customers.”

Ferguson said: “Companies must compete for workers just like they compete for customers.

“They cannot manipulate the market to keep wages low. My goal is to unrig a system that suppresses wages in the fast food industry.”

Ferguson also noted that these restaurants will have to face a lawsuit from his office if they fail to end no-poach provisions.

The provisions will affect low-wage employees across 500 Washington locations and more than 25,000 locations across the US.

Fast food major McDonald’s recently announced that it would not enforce no-poach clauses found in its franchise agreements and will not include them in its new franchise agreements.

Arby’s, Auntie Anne’s, Buffalo Wild Wings, Carl’s Jr., Cinnabon and Jimmy John’s are required to end no-poach language contracts across all Washington state locations within 120 days.