BALTIMORE, MD (November 10, 2022) – Maryland Attorney General Brian E. Frosh today joined a bipartisan coalition of 21 attorneys general filing an amicus brief challenging anti-competitive, “no-poach” provisions for low wage workers. These provisions were used by McDonald’s in its franchise agreements to restrict the rights of workers to move from one franchise to another in the restaurant chain.
The workers in this case, on behalf of a nationwide class of McDonald’s employees, contend that, until 2017, McDonald’s required all McDonald’s franchisees to sign agreements that contained a provision prohibiting them from hiring workers who worked for any McDonald’s restaurant currently or in the prior six months. The attorneys general argue that such agreements violate federal antitrust laws and interfere with workers’ ability to seek better employment opportunities, wages, and benefits.
“No-poach agreements limit job opportunities, mobility, and earning potential of employees,” said Attorney General Frosh. “In this case, we’re asserting that McDonald’s use of these agreements violated federal laws and harmed their workers.”
The coalition is asking an appeals court to reverse a lower court’s decisions siding with McDonald’s and against the workers. The brief notes that in recent years state attorneys general across the United States have focused on antitrust violations in labor markets and that enforcement actions against companies that use such agreements have led to higher wages for workers. The attorneys general argue that the lower court’s ruling in this case would sharply limit their ability to combat no-poach agreements.
The brief builds on Attorney General Frosh’s efforts to advocate for workers and fight unlawful employment practices, including joining a multistate settlement with four other fast-food franchisors that ended their use of similar “no-poach” agreements.
Attorney General Frosh was joined in filing the brief by the attorneys general of California, Colorado, Connecticut, Delaware, District of Columbia, Hawaii, Idaho, Illinois, Massachusetts, Minnesota, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, and Washington.
The workers in this case, on behalf of a nationwide class of McDonald’s employees, contend that, until 2017, McDonald’s required all McDonald’s franchisees to sign agreements that contained a provision prohibiting them from hiring workers who worked for any McDonald’s restaurant currently or in the prior six months. The attorneys general argue that such agreements violate federal antitrust laws and interfere with workers’ ability to seek better employment opportunities, wages, and benefits.
“No-poach agreements limit job opportunities, mobility, and earning potential of employees,” said Attorney General Frosh. “In this case, we’re asserting that McDonald’s use of these agreements violated federal laws and harmed their workers.”
The coalition is asking an appeals court to reverse a lower court’s decisions siding with McDonald’s and against the workers. The brief notes that in recent years state attorneys general across the United States have focused on antitrust violations in labor markets and that enforcement actions against companies that use such agreements have led to higher wages for workers. The attorneys general argue that the lower court’s ruling in this case would sharply limit their ability to combat no-poach agreements.
The brief builds on Attorney General Frosh’s efforts to advocate for workers and fight unlawful employment practices, including joining a multistate settlement with four other fast-food franchisors that ended their use of similar “no-poach” agreements.
Attorney General Frosh was joined in filing the brief by the attorneys general of California, Colorado, Connecticut, Delaware, District of Columbia, Hawaii, Idaho, Illinois, Massachusetts, Minnesota, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, and Washington.