McDonald’s No-Poach Case Tests Reach of Modern Antitrust Law

Two former McDonald’s employees will ask the Seventh Circuit Friday to reinstate a lawsuit accusing the fast food chain of suppressing wages through a no-poach agreement among the company and its franchisees, in a case where the FTC has showed particular interest.

The workers want the court to hold the agreement is a per se violation of federal antitrust law, and reject McDonald’s position that the no-hire provision was ancillary to the franchise agreement as to protect training investments and encourage cooperation.

A federal judge in Illinois denied the workers class status and ruled for McDonald’s, holding that the agreement ...