ARTICLE
7 January 2019

Increased Scrutiny Of "No-Poach" Restrictions

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Earlier this year, Washington State Attorney General Bob Ferguson announced settlements with fast-food franchises to remove "no-poach" clauses from their franchise agreements.
United States Employment and HR
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Earlier this year, Washington State Attorney General Bob Ferguson announced settlements with fast-food franchises to remove "no-poach" clauses from their franchise agreements. Some of the notable fast-food chains that have reached a settlement with Ferguson's office include Arby's, Carl's Jr., McDonald's, Jimmy John's, Cinnabon, Auntie Anne's and Buffalo Wild Wings.

On Oct. 15, 2018, Ferguson announced that his office has reached settlements with companies outside the fast-food industry to remove no-poach clauses from their franchise agreements. The companies include Valvoline, Planet Fitness and Anytime Fitness.

These companies are now legally obligated to immediately stop enforcing no-poach clauses in their franchisor-franchisee contracts and stop adding "no-poach" clauses to new franchise contracts.

This recent wave of settlements signals that Ferguson's office will continue to expand cracking down on the use of no-poach clauses into other industries to eventually reach his goal of eliminating no-poach clauses nationwide.

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