Fast-food chains agree to end ‘no-poaching’ policies

SEATTLE (AP) – Seven national fast-food chains have agreed to end policies that blocked workers from changing branches – limiting wages and job opportunities – under the threat of legal action from the state of Washington.

Washington Attorney General Bob Ferguson announced binding agreements with companies including Arby’s, Jimmy John’s and Cinnabon, Thursday. McDonald’s also signed on, but previously announced plans to end the practice.

The so-called no-poach policies prevent franchises from hiring workers away from other franchises of the same chain. That’s been considered convenient for franchise owners, but has blocked experienced workers at one franchise from getting better-paying jobs at others.

Ferguson credited the seven companies for quickly agreeing to end the practice nationwide in response to his legal threats and said fast-food chains that don’t follow suit will be sued.