Restaurant Chains Agree To End No Poach Policies

A hiring practice that depressed wages for America’s lowest paid workers appears to be on its way out. Eight more chain restaurants agreed to end a policy that blocks workers from switching jobs within the individual brands. The no-poach clause in workers contracts will be eliminated nationally as part of agreements with the Washington State attorney general. Such clauses were universal in fast food chains until last year, when two Princeton economists produced a report that showed how they lock workers into low-wage jobs. No-poach agreements differ crucially from non-compete clauses, which employees are made aware of. No-poach restrictions are routinely hidden in thick contracts between corporate headquarters and franchisees. The eight companies included in the Washington State agreement have more than 15,000 locations around the country. They will no longer enforce existing no-poach agreements, and will remove the language from future contracts.