Four national fast-food companies have agreed to stop using “no-poach” agreements meant to block workers from leaving one franchise to work for another in the same chain, Pennsylvania Attorney General Josh Shapiro said.
The agreements with Dunkin’, Arby’s, Five Guys, and Little Caesars settle an investigation by Pennsylvania and 13 other states over concerns the agreements hurt low-wage workers by limiting their ability to get better-paying jobs.
The attorneys general of the 14 states began an investigation in July by sending letters to eight restaurant chains seeking copies of franchise agreements.
Wendy’s provided confirmation it never used no-poach provisions in their contracts with franchisees.
Shapiro said investigations continue into Burger King, Panera Bread, and Popeyes Louisiana Kitchen.