Mass. AG Healey Leads 14-State Agreement with Five Guys, Dunkin’, Little Ceasars, and Arby’s

BOSTON – In a multistate settlement, led by Massachusetts Attorney General Maura Healey, four national fast food franchises will cease using “no-poach” agreements against employees.

No-poach agreements restrict the right of fast food workers to move from one franchise to another within the same restaurant chain.

Healey led a coalition of 14 attorneys general in the investigation into Dunkin’, Arby’s, Five Guys and Little Caesars, which began in July of 2018. The investigation was conducted over concerns that no-poach agreements hurt low-wage workers by limiting their ability to secure better paying jobs.

“No-poach agreements make it harder for fast food workers to gain promotions and earn a better living,” said AG Healey.

“This settlement is a major step toward ending the use of no-poach agreements for good.”

Under the terms of the settlements, the franchisors have agreed to stop including no-poach provisions in any of their franchise agreements and to stop enforcing any franchise agreements already in place. The franchisors have also agreed to amend existing franchise agreements to remove no-poach provisions and to ask their franchisees to post notices in all locations to inform employees of the settlement. Finally, the franchisors will notify the attorneys general if one of their franchisees tries to restrict any employee from moving to another location under an existing no-poach provision.

The attorneys general began their investigation by sending letters to Arby’s, Burger King, Dunkin’, Five Guys, Little Caesars, Panera, Popeyes, and Wendy’s requesting documents, including copies of franchise agreements and communications related to no-poach provisions.

The attorneys general alleged that no-poach provisions make it difficult for workers to improve their earning potential by moving from one job to another or seeking a higher-paying job at another franchise location, and that many workers are unaware they are subject to these no-poach provisions.  

Since the investigation began, Wendy’s confirmed that it never used no-poach provisions in their contracts with franchisees.

Investigations into Burger King, Popeyes, and Panera continue.

The AG’s Office urges anyone who believe that their rights have been violated in their workplace are encouraged to file a complaint.

The coalition included attorneys general from California, District of Columbia, Iowa, Illinois, Maryland, Massachusetts, Minnesota, North Carolina, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, and Vermont.

The matter is being handled by Division Chief Cyndi Mark, Assistant Attorney General Meryum Khan, Assistant Attorney General Amanda Morejon, and Investigator Kevin Shanahan, and all of AG Healey’s Fair Labor Division.

By TIM DUNN, CapeCod.com News Center 

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