Due to Burger King’s historical usage of a “no-hire” provision, a federal appeals court has reopened the possibility of a class action lawsuit. The provision prohibited all franchisees from employing personnel from one another.
The arguments that the no-hire condition was an illegal conspiracy were rejected by a district court judge. The judge made a mistake, according to the 11th Circuit, in concluding that the chain was one economic entity. In 2018, Burger King removed the no-hire provision from their franchise agreements.
Many other fast food restaurants followed suit. Chains have contended that there was no conspiracy in cases brought by pre-2018 employees. The Burger King case’s court decided against taking into account the latter claim.
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