McDonald's is asking the U.S. Supreme Court to hear a case to determine whether franchises can enforce rules against hiring another franchisor's employees within the same chain. The fast-food giant submitted an appeal to the court on Nov. 21. The company is no longer using a no-poach rule in its franchise agreements.
McDonald's has more than 2 million workers at about 40,000 franchised restaurants worldwide. It did not respond to a request for comment. We've collected a group of articles on the news from SHRM Online and other sources.
No Hiring McDonald's Workers from Other Franchises
Under the no-poach clause, McDonald's franchise operators agreed not to hire another franchisor's employees, or those employed directly by McDonald's, for six months after the employees' last date of employment with either entity. A separate clause prohibited franchises from soliciting other franchises' employees.
In June 2022, a federal district court rejected employees' argument that the no-poach rule violated the Sherman Antitrust Act. But in August 2023, the 7th U.S Circuit Court of Appeals held that the lower court had done so too early. It vacated the judgment and remanded the case for further proceedings.
Within the last five years, multiple fast-food chains have removed no-poach clauses from their franchise agreements, after state attorneys general launched investigations.
(HR Dive)
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