DOJ Is Trying To Rein In Franchise No-Poach Suits

By Boris Bershteyn, Karen Hoffman Lent, Tara Reinhart and Zachary Siegler (February 19, 2019, 4:21 PM EST) -- When we last wrote about evolving antitrust treatment of so-called "no-poach" agreements in October, Washington state Attorney General Bob Ferguson had recently expanded his investigation into the use of such agreements by franchise-based companies outside of the fast food industry, and private plaintiffs around the country were continuing to file class actions challenging various fast food companies' use of such agreements.

Since then, Ferguson has secured additional settlements with franchise-based businesses in a variety of different industries (e.g., hotel chains, tax preparation services, home cleaning services) to end their use of no-poach agreements; as of January 2019, his office has settled...

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