Jackson Hewitt Agrees to Settle No-Poach Case for $10.8 Million

Jackson Hewitt Tax Service Inc. agreed to pay $10.8 million to settle claims it suppressed employee wages through no-poach contracts with its franchisees.

The proposed settlement, and the employee plaintiffs’ request for the court’s approval, was filed late last week in US District Court for the District of New Jersey. The deal seeks to compensate a settlement class that encompasses more than 30,000 Jackson Hewitt tax preparers and follows five years of litigation.

The case has garnered interest from the US Department of Justice, as part of the Biden administration’s broader interest in competition ...