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Eight large fast-food chains are being monitored by the authorities of 11 states on rules that prevent employees returning hamburgers for a franchise from jumping to a better-paying job to another in the same chain.
The Attorney General of New Jersey is now among state authorities looking for answers on the "no-poach" clauses in many franchise contracts prohibiting independent operators of large corporations from entering the country. hire workers from other stores.
Attorneys General stated that cartels may prohibit workers from moving from one franchise location to another and, in some cases, may restrict a worker's ability to change their business. employment in the same industry.
Led by the Massachusetts Attorney General, representatives from the states of New Jersey, Pennsylvania, and New York Monday sent a letter to chain operators to explain to them how they limited employee capacity to move.
These companies owe millions to New Jersey
"In the fast food industry, non-poaching agreements can limit a worker's job prospects and restrict his or her work. Earnings potential, not only unfair to the worker but Pennsylvania's Attorney General, Josh Shapiro, said many workers "only learn that these agreements exist when they are denied the chance to access a better job, to earn more money or get family friendly schedule options. "
The letter was sent to the Burger King, Dunkin's, Donuts, Five Guys Burgers and Fries, Little Caesars, Wendy's, Arby's, Popeyes' offices. Louisiana Chicken and Panera Bread, informing them that they had "reasons to believe." Used such restrictive language in their franchise contracts.
In a statement to Bloomberg, Dunkin & Donuts denied need other "non-poach" agreements Other companies could not be contacted immediately for comment
The practice of preventing franchise owners from hiring workers Other places in a particular chain have been criticized in recent years: At the federal level, US Senator Cory Booker co-sponsored a law to ban this practice.
Letter from Attorneys General asks companies to reconsider the uti agreements, saying that they hurt employees and limit the possibility for other franchises to benefit from skilled workers.
S.P. Sullivan can be contacted at [email protected]. Follow him on Twitter . Find NJ.com on Facebook.
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