McDonald's should face lawsuit over no-poach pacts, says Biden admin.
ReutersNov 11, 2022
On Friday, the 7th US Circuit Court of Appeals in Chicago revived the proposed nationwide class action suit accusing McDonald's of violating federal antitrust law.
The lawsuit alleges McDonald's required franchisees not to hire each other's employees — a policy previously ruled valid by a district judge, who said it protected franchisees' investments in trained workers.
No-poach agreements are against free market principles and undermine the rights of workers, as they hinder employees from seeking promotions and earning a better living. Such practices, which employees have often been unaware existed, are unlawful and harm competition in the labor market by reducing employee mobility and suppressing wages.
No-poach or no-hire agreements only bar employees at franchise-owned restaurants from being hired by a separate franchise within the same chain. Under such agreements, workers are still free to seek more competitive roles with other employers if they wish — these practices shouldn't be subject to antitrust scrutiny.
There's a 50% chance that the first fully automated McDonald's will open in the US by April 2030, according to the Metaculus prediction community.