CHICAGO (CN) — The Seventh Circuit scrutinized McDonald's no-poaching policy with its subordinate franchises on Friday morning, in a case that alleges franchise employees nationwide suffered artificial wage suppression.
The case dates back to 2017, when a manager at a Florida McDonald's franchise named Leinani Deslandes applied to fill the same position at another McDonald's franchise. The new location offered better advancement opportunities and would pay her $14.75 an hour, after a 90-day probationary period, to do the same work she had been doing at her present franchise for $12 an hour.
Unfortunately for Deslandes, her employer refused to let her work at the new location.
The terms of McDonald’s contract with its franchises allowed it to do so. The agreement bars franchises from hiring any of each others' employees who have worked at their respective restaurants within the past six months. Franchises can willingly release their employees to go work at another McDonald's location, but Deslandes' employer chose not to.
Deslandes filed a class action against the fast food giant over the no-poaching provision in June 2017, claiming it was a violation of antitrust law that artificially suppressed franchise employees' wages and competition. She was joined by another franchise employee with a similar complaint in 2019.
A long legal battle ensued in Chicago federal court, one which Deslandes and Turner didn't win. The court first denied their class certification, and last year...
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