By Dan Forman, Carothers DiSante & Freudenberger LLP
April 15, 2019
Litigation over the enforcement of “no poach” agreements continues to evolve. “No-poach” agreements have been used to promote brand consistency, efficiency and minimize employee turnover, and many franchise agreements of fast-food purveyors include such restrictions.
In the summer of 2018, at least ten different states investigated such provisions to, among other things, evaluate whether the no-poach agreements acted to depress wages or have other antitrust implications. Shortly after the investigation became public, many national franchise chains and other employers agreed not to enforce no-poach agreements of their franchisees and settled with the State of Washington to avoid any enforcement action.
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