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Franchises Antitrust Violations Franchise Agreements

Zelle  LLP

Burger King Employees Persist After Renewed Motion to Dismiss

Zelle LLP on

Last month, Judge Jose E. Martinez of the U.S. District Court for the Southern District of Florida denied the Burger King Defendants’ (“Burger King”) motion to dismiss a putative class action alleging that its “No-Hire”...more

Bilzin Sumberg

District Court Denies Burger King’s Motion to Dismiss Putative Class Action Related to No-Poaching Provisions in Franchise...

Bilzin Sumberg on

Arrington v. Burger King Worldwide, Inc., No. 1:18-cv-24128 (S.D. Fla. Oct. 5, 2018) – In October 2018, Jarvis Arrington, a former employee at a Burger King franchisee in Illinois, filed a class action complaint against...more

BakerHostetler

Department of Justice and Federal Trade Commission Release Guidelines on Business Practices That Impact Workers

BakerHostetler on

On January 16, 2025, in the waning hours of the Biden-Harris administration, the Department of Justice (DOJ) and Federal Trade Commission (FTC) jointly released their “Antitrust Guidelines for Business Activities Affecting...more

Quarles & Brady LLP

Seventh Circuit Rejects Dismissal of Franchisee No-Poach Clause Challenge

Quarles & Brady LLP on

In Deslandes v. McDonald’s USA LLC, issued August 25, 2023, the U.S. Court of Appeals for the Seventh Circuit overturned the dismissal of antitrust claims that challenged no-poach clauses in franchise agreements....more

Bilzin Sumberg

Eleventh Circuit Revives Putative Class Action Against Burger King for Violation of Federal Antitrust Laws Based on No-Poaching...

Bilzin Sumberg on

Arrington v. Burger King Worldwide, Inc., No. 20-13561 (11th Cir. Aug. 31, 2022) – In October 2018, a former line cook of a Burger King franchise restaurant in Illinois, filed a class action complaint in the District Court...more

Perkins Coie

Antitrust Challenge to McDonald’s No-Poach Restriction Evaluated Under the Rule of Reason

Perkins Coie on

A federal judge in the U.S. District Court for the Northern District of Illinois has held that an antitrust challenge to a “hiring restriction [that] prevented” plaintiff employees “from taking a better-paying position with a...more

Fox Rothschild LLP

No-Poach And Antitrust, Part Deux (Or, Is The Risk Worth It?)

Fox Rothschild LLP on

In a recent post, I expressed the view that no-poach clauses in franchise agreements are unlikely to violate the antitrust laws. Recent activity, however, has given me a “maybe yes, maybe no” on my prediction....more

Dorsey & Whitney LLP

Employers Beware: Recent Developments in Employee No-Poaching Agreements

Dorsey & Whitney LLP on

No poaching agreements among employers continue to make antitrust news, and employers and their HR professionals need to take note. Whether or not a particular agreement has a valid purpose (such as protecting an employer’s...more

Fox Rothschild LLP

Time To Reconsider No Poaching Agreements? Yes, Emphatically.

Fox Rothschild LLP on

Renewed Efforts to End No Poaching Provisions- Franchisors need to review their franchise agreements and take immediate action in response to the recent onslaught of legal action over “naked no poaching” provisions in...more

Fox Rothschild LLP

Franchisors Face Growing Scrutiny Over ‘No Poaching’ Provisions

Fox Rothschild LLP on

Franchisors need to review their franchise agreements and take immediate action in response to the recent onslaught of legal action over “no poaching” provisions in franchise agreements. In a typical franchise agreement, a...more

Jackson Lewis P.C.

State Attorneys General Step Up Antitrust Probes Of Franchise Industry Hiring Practices

Jackson Lewis P.C. on

In the midst of a federal effort to ramp up antitrust prosecutions of companies agreeing not to recruit or hire each other’s employees special scrutiny – and criticism – has been directed toward the use of no-poach agreements...more

Seyfarth Shaw LLP

State Attorneys General Investigate Fast Food Franchisor “No Poach” Agreements

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The Attorneys General of ten states are investigating fast food franchisors for their alleged use of “no poach” provisions in their franchise agreements, according to a press release by the New Jersey Attorney General’s...more

Polsinelli

Anti-Poaching Provisions in Franchise Agreements Are Drawing Increased Scrutiny

Polsinelli on

Franchise agreements often contain provisions prohibiting the franchisee from soliciting or hiring workers employed by the franchisor or other franchisees. Such “anti-poaching” agreements have recently come under increased...more

Troutman Pepper Locke

No-Poach Agreements Targeted by Plaintiffs, Enforcement Agencies and Senators

Troutman Pepper Locke on

Agreements among companies to not hire each other’s workers are more risky than ever. The DOJ’s Assistant Attorney General for the Antitrust Division, Makan Delrahim, stated on January 19 that the division has criminal cases...more

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