A federal judge in Florida has dismissed a proposed class action against Burger King that alleges that the company’s former no-poach provisions in its franchise agreements were illegal.
The judge found that Burger King franchisees were dependent on their franchisor to such an extent that they constituted a single entity akin to a parent-subsidiary corporate relationship and were incapable of conspiring to violate the antitrust laws.
The plaintiffs claimed that the no-hire provisions were “per se” unlawful. The defendants insisted that, under a “quick look analysis,” no one with a rudimentary understanding of economics could find that the no-hire provisions had anticompetitive effects on employees or labor.
Full Content: Law 360
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