Fast Food Franchisees Settle Employee No-Poach Suits (2)

March 19, 2019, 3:02 PMUpdated: March 19, 2019, 7:55 PM

Operators of Arby’s, Carl’s Jr., and Auntie Anne’s franchises have settled consolidated lawsuits accusing them of preventing their employees from going to work for different stores within the same chain.

Less than a week earlier, Arby’s joined three other fast-food chains—Dunkin’ Donuts, Five Guys, and Little Caesars—agreeing to end the use of no-poach agreements altogether. That March 12 agreement closed an eight-month investigation by 14 states into the use of no-poach agreements between franchisors and franchisees that often weren’t disclosed to employees.

The federal judge overseeing the private litigation announced the settlements in a March 18 order closing ...

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