[ad_1]
Seven fast food chains – including Arby's, Cinnabon and McDonald's – have committed to ending the so-called "no-poaching" rules that prevent employees from switching from one franchise to the other.
Washington State Attorney General Bob Ferguson said Thursday that the deal could end the practice in about 25,000 restaurants across the country.
The move will mean more equitable hiring practices for "tens of thousands of low-wage workers" in the United States, the Ferguson office said. His office also said that he was going to sue franchises who would violate the agreement, and that companies could be subject to civil penalties or fines.
The fast food chains included in the agreement are Arby's, Auntie Anne, Buffalo Wild Wings, Carl's Jr., Cinnabon, Jimmy John's, and McDonald's ( MCD ) .
The "no-poaching" rules prevent franchise-owned restaurant workers from being hired by a separate franchise in the same chain.
Because such rules are usually laid down in business franchise agreements, and not in labor agreements, employees often ignored that they existed, Ferguson's office said.
Related: Why Benefits Are Not the Answer to Employee Retention Problems
The Rules Have Not Prohibited Fast Food Workers from Taking a Job with a Chain different fast food – like leaving an Arby's for a McDonald's location. But, according to Ferguson 's office, they for instance prevented workers from going from one Cinnabon site belonging to one franchise to another where they could offer them more money. .
Economists say this practice reduces competition for workers, and therefore cuts their wages, according to a press release from the Ferguson office. This violates the provisions of the Washington State Consumer Protection Act, the states of liberation.
Related: Why fast food chains are selling Frankenfood
McDonald's had already promised to give up enforcing anti-poaching provisions across the country, but the new deal makes this legally binding commitment, according to the Feguson office.
McDonald's is committed to removing all non-poaching provisions in early 2017 and said Thursday that it was "please cooperate" with the Ferguson office.
Inspire Brands, owner of Arby's and Buffalo Wild Wings, said he was "happy" to work with Ferguson "to quickly solve his problems."
CNNMoney contacted the other companies involved in the agreement, but none immediately responded to a request for comment. None of the companies admitted to committing any wrongdoing by signing the deal with Ferguson.
A Ferguson spokesman said in an email that his office "could take action with any of these seven franchises because the terms of the legal agreement say that they are going to stop doing it nationally. "
But it is unclear to what extent the Ferguson office could enforce the agreement beyond Washington's borders. While attorneys general can enforce the settlement agreements that they reach with businesses, it is very difficult to challenge behavior that occurs outside of their home country.
The Ferguson office credited a 2017 New York Times report on non-poaching practices to spur the investigation, and he said that polls on anti-poaching practices by the US government would be the best. other fast food chains are in progress.
In a separate announcement on Thursday, 11 Attorneys General co-signed letters sent to eight fast food chains – Arby's, Burger King, Dunkin's Donuts ( DNKN ) Five Burger Burgers and Fries, Small Caesars, Panera Bread, Louisiana Popeyes Kitchen and Wendy & # 39; s ( WEN ) . The letter asks for additional information on the companies' use of non-poaching rules.
Massachusetts Attorney General Maura Healey said in a statement that non-poaching agreements "unfairly limit the freedom of fast-food and other low-wage workers to seek promotions and make a living."
"Our goal through this action," she said, "is to reduce barriers and enable workers to get better paid and more skilled jobs."
CNNMoney (New York) First published on July 12, 2018: 5 pm ET
[ad_2]
Source link
