In what’s being declared a win for workers, four national fast food chains agreed Tuesday to stop using “no-poach” agreements.
“No poach” agreements are clauses, often contained in fast-food franchise agreements, that prevent fast food workers from switching between employers of the same franchise in order to obtain a better job with a higher salary or improved working conditions.
Attorney General Josh Shapiro announced the agreement as part of a 14-state settlement led by Pennsylvania and Massachusetts.
The agreements 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 limit the ability of low-wage workers to secure better paying jobs.
“’No-poach’ agreements unfairly exploit working women and men, especially low-wage workers, and this agreement holds major fast food franchises accountable,” said Shapiro. “These companies did the right thing by coming to the table and working with attorneys general to find solutions, and I hope that other food chains will also step up and follow suit.”
Under the terms of the settlements, the chains will stop including “no-poach” provisions in any future franchise agreements and stop enforcing the clause in any franchise agreements already in place.