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Franchises No-Poaching

Lathrop GPM

Deadline Approaching for Minnesota Anti-Poaching Compliance

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As the deadline for the Minnesota Anti-Poaching Update draws near, franchisors are reminded to update existing franchise agreements pertaining to non-soliciting and no-poaching restrictions....more

Lathrop GPM

Kentucky Federal Court Questions Proposed $5 Million Settlement in Anti-poaching Class Action

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Refusing to rubber-stamp a proposed $5 million anti-poaching class action settlement, a federal court in Kentucky has directed the plaintiff to provide additional information to allow proper consideration of the factors...more

Patterson Belknap Webb & Tyler LLP

Seventh Circuit Rescues McDonald’s Workers’ Challenge to No-Poach Clause

The Seventh Circuit recently revived an antitrust challenge to a clause in McDonald’s franchise agreements barring franchises from poaching other franchises’ employees. (See our previous coverage of antitrust challenges to...more

Lathrop GPM

Seventh Circuit Reverses Dismissal of Anti-Poaching Class Action Against McDonald’s

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In an important case of first impression that drew amicus participation from the Department of Justice, the Federal Trade Commission, and the International Franchise Association, the Seventh Circuit reversed a judgment in...more

Quarles & Brady LLP

Seventh Circuit Rejects Dismissal of Franchisee No-Poach Clause Challenge

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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

Foley & Lardner LLP

Seventh Circuit Revives Franchise No-Poach Case, Holds Per Se Treatment Possible

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A recent opinion by the U.S. Court of Appeals for the Seventh Circuit reinstates allegations against McDonald’s that no-poach provisions in the company’s franchise agreements violate the antitrust laws, holding that such...more

Lathrop GPM

Minnesota Prohibits Certain Restrictive Covenants in Franchise Agreements

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Reflecting a shifting national landscape on restrictive covenants, the Minnesota Legislature recently adopted legislation that prohibits franchisors from placing certain nonsolicitation and no-poach restrictions in franchise...more

Cozen O'Connor

Getting Ready for Canada’s Upcoming Ban on Wage-Fixing & No-Poach Agreements

Cozen O'Connor on

Wage-fixing and no-poach agreements will be illegal and subject to criminal penalties and damages actions in Canada as of June 23, 2023, as part of a package of amendments to the Competition Act passed in 2022. The new...more

Bradley Arant Boult Cummings LLP

FTC Proposes Rule to Strike Noncompete Agreements Nationwide

On January 5, 2023, the Federal Trade Commission (FTC) announced a proposed new rule that would effectively prohibit employers from requiring employees to agree to noncompete clauses. The public is invited to submit comments...more

Bilzin Sumberg

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

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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

Fox Rothschild LLP

Want Some Antitrust with your Burger?

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Eleventh Circuit’s Burger King opinion raises antitrust risks in franchising- Sherman Act challenges to “no-poach” clauses in franchise agreements have been languishing in federal courts for a few years now, but with...more

Troutman Pepper

Recent No-Poach Developments: Hold the Pickle, Hold the Dismissal — Eleventh Circuit Overturns Burger King's District Court...

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In early September, the Eleventh Circuit reversed the district court’s judgment for defendants Burger King Corporation, Burger King Worldwide, Inc., and their ultimate parent Restaurant Brands International, Inc....more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Eleventh Circuit Serves a Whopper of a Ruling on Franchisor’s ‘No-Poach’/‘No-Hire’ Agreement With Franchisees

​​​​​​​Over the last several years, business-to-business “no-hire” and “no-poach” agreements have come under legal attack, including through enforcement actions by the Federal Trade Commission and criminal prosecutions by the...more

BakerHostetler

Decision Benefits Franchise Businesses and Finds Alston Bars Challenge to No-Poach Agreements

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In June 2021, the Supreme Court reaffirmed in NCAA v. Alston that antitrust claims under Section 1 of the Sherman Act “presumptively” call for rule-of-reason analysis and that only the rare case merits “quick look” or per se...more

Perkins Coie

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

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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

Troutman Pepper

Federal Court Denies DOJ's Request to File Statement of Interest in Pending McDonald's No-Poach Class Action

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The Biden administration's Department of Justice, Antitrust Division (DOJ) continues a practice largely begun under the Trump administration of intervening in private litigation and requesting permission to file statements of...more

Lathrop GPM

Global Franchise Regulation Update - March 2022

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New Standard Contract Language for Data Transfers Facilitates Lawful Personal Data Transfers to/from EU and U.S. - In response to the EU Court of Justice Schrems II opinion, which declared that the former EU-US Privacy...more

Stark & Stark

No-Poach Clauses in Franchise Agreements: The Saga Continues in 2022

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For the past few years, it seems franchisors have been riding a roller coaster when it comes to no-poach clauses in their franchise agreements. While for a time it seemed as though scrutiny for such clauses might be fading,...more

Lathrop GPM

The Franchise Memorandum - Issue #269

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Two Illinois Federal Courts Deny Class Certification in Anti-Poaching Class Actions Against Franchisors - Two federal courts in Illinois have rejected motions to certify classes of employees who worked in franchised...more

Fox Rothschild LLP

Reappraisal Of Anti-Poaching And Non-Competes In Franchising (Part 1 Of 2)

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Let’s review the status of activity restrictions in franchise agreements. Do they serve the purpose intended? Are they enforceable? Are they worth it? The Pennsylvania Supreme Court’s decision in Pittsburgh Logistics Systems...more

Lathrop GPM

The Franchise Memorandum - Issue # 263

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Illinois Federal Court Excludes Plaintiffs’ Expert Testimony on Certification Motion in Anti-Poaching Class Action - A federal court in Illinois granted Jimmy John’s motion to exclude expert testimony of a putative class...more

BakerHostetler

Franchise No-Poach Agreements: Is Reform on The Horizon?

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In 2016, the Department of Justice (DOJ) and the Federal Trade Commission (FTC) issued Joint Guidance for Human Resource Professionals warning that no-poach agreements restricting employee hiring may violate the antitrust...more

Troutman Pepper

No-Poach Franchise Case Dismissed Under Single-Entity Rule

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Are franchisees dependent offshoots of their franchisors, or are they standalone businesses capable of independent decision-making?...more

Lathrop GPM

The Franchise Memorandum - Issue 249

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Welcome to The Franchise Memorandum by Lathrop GPM, formerly known as The GPMemorandum. Since December 1997, The GPMemorandum has been presenting summaries of recent legal developments of interest to franchisors and companies...more

Fox Rothschild LLP

To Poach Or Not To Poach

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Franchise systems, and many licensing arrangements contain anti-poaching provisions. These provisions are being tested under the antitrust laws as being anticompetitive. This article will discuss the benefits and burdens of...more

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