Weinberger Law

August 2018 Archives

An update on antipoaching agreements used by franchises

This spring, a group of Attorney Generals from ten states and the District of Colombia alleged that anti-poaching agreements common in fast food industry franchises were violating federal antitrust laws. It is alleged that the use of such agreements violate antitrust rules because it may reduce competition and keep wages low. Two federal district courts in Illinois have allowed class action lawsuits by employees of franchises McDonald’s¹ and Jimmy John’s² to proceed at the end of June and July 2018, respectively, based on these allegations.

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