Bloomberg Law
Dec. 17, 2018, 9:03 PM

Papa John’s No-Poach Rules Draw Antitrust Lawsuit

Jon Steingart
Jon Steingart
Legal Intelligence Reporter

Papa John’s suppresses pay and limits employment opportunities by barring franchisees from recruiting each other’s employees, according to a new antitrust lawsuit.

The company’s standard franchise agreement included no-poach language in which franchisees agreed not to “solicit, entice or induce” employees of Papa John’s, its affiliates, or its franchises to leave their positions, according to the Dec. 17 complaint.

A prep cook and driver at a pizzeria in Fort Collins, Colo., filed the suit in the U.S. District Court for the Western District of Kentucky.

No-poach agreements differ from non-compete agreements. A non-compete is a promise by an employee not ...

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