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No-Poach Agreements

H&R Block Logo

Agreements in which employers or franchises agree not to hire each other’s workers are known as no-poach agreements. They are common, but they are also not legal, because they violate antitrust laws by restraining competition for workers. Lately, fast-food franchises have been targeted by class actions for their no-poach agreements. This class action bring suit against tax preparers H&R Block, Inc. and H&R Block Tax Services, LLC.

Company Cars Lined Up in Lot at CIS

Can two companies, a law firm, and a few individuals restrain trade in the security guard industry in a state? The complaint for this class action alleges that Critical Intervention Services, Inc. (CIS), the KPP Security Group (KPP), the Solomon Law Group, PA, and four people did exactly that. It alleges that the companies “entered customer allocation and no-poaching or no-hiring agreements with competing private security companies throughout Florida and beyond.” The complaint claims violations of the Sherman Act.

H&R Block Logo

H&R Block has over 10,000 of its own offices, in the US and elsewhere, plus 3,300 franchises across the US. The complaint for this class action alleges that the company does not permit its various corporate-owned offices and franchises to compete with each other for employees. Such no-poach agreements violate antitrust laws. 

Arby's Sandwich with Meat and Cheese on a Bum

This is another among many antitrust class actions being brought against fast food companies for the no-poach clauses in their franchise agreements. As in other cases, the complaint alleges that the clauses are anticompetitive and keep wages low.

Papa John's Pizza

Papa John’s is the fourth-largest pizza company in the world, the complaint for this class action says. As such, the complaint alleges, its no-poach agreements are likely to have an anticompetitive effect on the labor market.

Jiffy Lube Shop

Jiffy Lube has more than 2,000 shops across the US, and the complaint for this class action claims that it has no-poach provisions in its standard franchise agreements. The complaint alleges that wages at Jiffy Lube shops are low and that the no-poach provisions are part of the reason. 

Burger King Meal with Burger, Fries, and Drink

The complaint for this class action alleges that Burger King franchises are required to agree to no-poach agreements and that these agreements are anticompetitive and illegal and keep worker wages down.