Pizza Hut, Burger King among 23 chains now ending no-poach pacts

Pizza Hut, Burger King among 23 chains now ending no-poach pacts

Washington state Attorney General Bob Ferguson said that eight additional corporate, "fast-food chains" will end no-poach practices nationwide, joining15 other chains that have already agreed to the same action. Collectively, those 23 brands account for more than 67,000 restaurants nationwide, employing millions of workers, who the clauses impacted by potentially reducing the places they could work and wages earned, according to Ferguson's office. These agreement affect all current and future franchise contracts.

Ferguson began investigating fast-food chains in January as part of an initiative to eliminate no-poach clauses nationwide. The latest eight companies to agree to end no-poach enforcement and remove no-poach language from contracts include: 

  • A&W with an estimated 629 locations nationwide.
  • Burger King with approximately 7,226 locations nationwide.
  • Denny's with 1,607 locations nationwide.
  • Papa John's with 3,314 locations nationwide.
  • Pizza Hut with 7,496 locations nationwide.
  • Popeyes with 2,231 locations nationwide.
  • Tim Hortons with 738 locations nationwide.
  • Wingstop with 1,027 locations nationwide.

With this announcement, Ferguson is nearing his goal of eliminating no-poach clauses in the fast-food industry among corporate chains with a significant nationwide presence. Ferguson continues to investigate a handful of corporate chains, including Baskin-Robbins, Domino's, Quiznos, Firehouse Subs and Jersey Mike's. 

The attorney general's office said if those remaining entities refused to sign off on similar agreements, enforcement actions will be filed. 

"My goal is to eliminate no-poach clauses nationwide to benefit workers," Ferguson said in a release about the agreements on the Washington Attorney General's website.  "No-poach provisions create a rigged system where businesses no longer have to compete for workers, putting downward pressure on wages nationwide. That's wrong — and illegal."

Topics: Business Strategy and Profitability, Hiring and Retention, Human Resources, Workforce Management

Companies: Burger King, Popeyes, Papa John's, Pizza Hut, Wingstop, Tim Hortons

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