Seven major fast food chains in the US have announced an end to policies that prevent workers from changing branches – policies which formerly limited wages and job opportunities. The state of Washington has threatened legal action against fast food chains which don’t comply, and so far McDonald's, Auntie Anne's, Arby's, Carl's Jr., Jimmy John's, Cinnabon and Buffalo Wild Wings have all agreed to the terms.
"Our state antitrust laws are very clear: Businesses must compete for workers the same way as they compete for customers," Washington Attorney General Bob Ferguson said. "You can't rig the system to avoid competition."
The ‘no-poach’ policies prevent franchise owners from hiring workers away from other franchises, initially devised as a way of making sure that any workers trained by owners would stay put and give a return on investment. However, the rules have prevented more experienced workers from taking up job opportunities at other branches, potentially leaving thousands of workers stuck in low wage positions.
While the fast food chains denied that their policies were illegal, separate agreements filed in court revealed that they were complying to avoid extensive litigation. In a statement, McDonald’s said that it happily removed its no-poach policies and that “everyone at McDonald's has an opportunity to grow and progress throughout their career.”
