Pennsylvania Attorney General Josh Shapiro is investigating fast-food franchisors in connection with their no-poach agreements on workers.
On Monday, Shapiro sent a letter to eight national fast-food franchisors regarding their no-poach agreements. The attorney general’s office in 10 other states including California, Massachusetts and New York are also investigating the matter.
No-poach Agreements Harm Workers
In the letter, Shapiro and his colleagues stated that they have reason to believe that the franchisors included no-poach provisions in their franchise agreements. They emphasized that such agreements hurt low-wage workers by limiting workers’ ability to seek better jobs that offer higher salaries within the fast-food industry.
Additionally, they said no-poach agreements “deprive other franchises of the opportunity to benefit from the skills of workers.”
Furthermore, Shapiro and his colleagues pointed out that such agreements not only harm workers, but also the economies of the states. They requested information and documents that contain language that restricts or prevents franchisees from hiring or soliciting employees from other franchisees.
