Business News
SACRAMENTO – California Attorney General Xavier Becerra announced that the state of California, as part of a multistate effort, has entered into agreements with four major fast food companies that prohibit those franchise corporations from continuing to employ “no-poach” policies.
Many of these anticompetitive no-poach provisions required franchise operators to contractually agree to not hire or solicit the employees of another franchise operator.
As a consequence, employees, many of whom are low-wage workers, may be unable to seek better pay and benefits by going to work for a competing franchise. Workers are often unaware of these provisions in the contracts.
As a result of Tuesday’s settlements, Arby’s, Dunkin’, Five Guys and Little Caesars will no longer include no-poach provisions in any of their franchise agreements in the United States.
“Our economy thrives when everyone is doing well,” said Attorney General Becerra. “No-poach agreements attempt to prevent competition and limit economic opportunity for hard-working Californians. The agreements announced today are an important step forward to protect our workers and our economy.”
“No-poach” provisions are routinely included in franchise agreements for many fast food dining outlets. These provisions are also known as “no-solicitation,” “no-hire,” or “no-switching” agreements. Agreements that contain these provisions ultimately restrict a franchisee’s ability to recruit or hire employees from one franchise to another. They also diminish an employee’s ability to seek new work and earn higher wages.
Last year, Attorney General Becerra joined multiple states in a review of franchise no-poach policies that harm workers, and today’s action is a result of that initiative. Participating in the settlements are: California, Massachusetts, Illinois, Iowa, Maryland, Minnesota, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, and the District of Columbia.
These settlements build on Attorney General Becerra’s efforts to protect the rights of workers throughout the state of California.
In January, the California Department of Justice joined a multistate comment letter opposing a National Labor Relations Board proposal that would diminish protections for millions of workers.
Last year, Attorney General Becerra filed an amicus brief supporting the rights of truck drivers to receive reimbursement for certain expenses incurred in relation to their employment.
Attorney General Becerra also co-led a coalition of 17 Attorneys General opposing a Trump Administration rule to allow employers to pocket the tips of certain employees that threatened up to $5.8 billion of workers’ earned tips.
In November 2017, Attorney General Becerra filed a lawsuit against One Source, a janitorial subcontracting company based in Orange County, to protect janitorial workers in retail establishments across California from wage theft.
Copies of the agreements can be found here.
Many of these anticompetitive no-poach provisions required franchise operators to contractually agree to not hire or solicit the employees of another franchise operator.
As a consequence, employees, many of whom are low-wage workers, may be unable to seek better pay and benefits by going to work for a competing franchise. Workers are often unaware of these provisions in the contracts.
As a result of Tuesday’s settlements, Arby’s, Dunkin’, Five Guys and Little Caesars will no longer include no-poach provisions in any of their franchise agreements in the United States.
“Our economy thrives when everyone is doing well,” said Attorney General Becerra. “No-poach agreements attempt to prevent competition and limit economic opportunity for hard-working Californians. The agreements announced today are an important step forward to protect our workers and our economy.”
“No-poach” provisions are routinely included in franchise agreements for many fast food dining outlets. These provisions are also known as “no-solicitation,” “no-hire,” or “no-switching” agreements. Agreements that contain these provisions ultimately restrict a franchisee’s ability to recruit or hire employees from one franchise to another. They also diminish an employee’s ability to seek new work and earn higher wages.
Last year, Attorney General Becerra joined multiple states in a review of franchise no-poach policies that harm workers, and today’s action is a result of that initiative. Participating in the settlements are: California, Massachusetts, Illinois, Iowa, Maryland, Minnesota, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, and the District of Columbia.
These settlements build on Attorney General Becerra’s efforts to protect the rights of workers throughout the state of California.
In January, the California Department of Justice joined a multistate comment letter opposing a National Labor Relations Board proposal that would diminish protections for millions of workers.
Last year, Attorney General Becerra filed an amicus brief supporting the rights of truck drivers to receive reimbursement for certain expenses incurred in relation to their employment.
Attorney General Becerra also co-led a coalition of 17 Attorneys General opposing a Trump Administration rule to allow employers to pocket the tips of certain employees that threatened up to $5.8 billion of workers’ earned tips.
In November 2017, Attorney General Becerra filed a lawsuit against One Source, a janitorial subcontracting company based in Orange County, to protect janitorial workers in retail establishments across California from wage theft.
Copies of the agreements can be found here.
- Details
- Written by: California Attorney General's Office
LAKEPORT, Calif. – West Business Development Center will host a workshop titled “Kitchen to market: Make a profit from your family recipe” on Thursday, March 21.
The workshop will take place from noon to 3 p.m. at the Mendocino College Lake Center, 2565 Parallel Drive in Lakeport.
Instructor Anni Minuzzo is a specialty food expert with more than 30 years of experience in the food and beverage industry, 20 of which were spent owning a wholesale baking company.
She has a broad network of professional associations and a long lens and hands-on expertise in this exciting industry's trending culture.
Topics she’ll cover include licensing, fees and certifications, the planning and production process, capitalization options, current and future industry trends, creative marketing ideas and more.
The cost is $45 for general admission, $40 for Women In Business and chamber members, and $35 for West Center clients.
Seating is limited. Call 707-964-7571 or visit www.westcenter.org/live-workshops.
The workshop will take place from noon to 3 p.m. at the Mendocino College Lake Center, 2565 Parallel Drive in Lakeport.
Instructor Anni Minuzzo is a specialty food expert with more than 30 years of experience in the food and beverage industry, 20 of which were spent owning a wholesale baking company.
She has a broad network of professional associations and a long lens and hands-on expertise in this exciting industry's trending culture.
Topics she’ll cover include licensing, fees and certifications, the planning and production process, capitalization options, current and future industry trends, creative marketing ideas and more.
The cost is $45 for general admission, $40 for Women In Business and chamber members, and $35 for West Center clients.
Seating is limited. Call 707-964-7571 or visit www.westcenter.org/live-workshops.
- Details
- Written by: Elizabeth Larson
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