Four fast-food restaurants are ending their policy of restricting employees’ ability to move from one franchise to another.
Iowa’s Attorney General was one of 14 attorneys general involved in a multi-state settlement.
In the settlement Dunkin’, Arby’s, Five Guys, and Little Caesars have agreed to stop their no-poach agreements.
“This practice gives franchise locations less incentive to give raises to employees and reduces competition for workers,” Iowa Attorney General Tom Miller said. “This drags down wages for millions of Americans.”
Miller says the no-poach provisions are often contained in agreements between corporate headquarters and franchisees and are not disclosed to employees.