According to a new antitrust lawsuit, pizza chain Papa John’s suppresses pay and limits employment opportunities by barring franchisees from recruiting each other’s employees.
The company’s standard franchise agreement included no-poach language in which franchisees agreed not to “solicit, entice or induce” employees of Papa John’s, its affiliates, or its franchises to leave their positions, according to the December 17 complaint.
In September, Papa John’s stated it will no longer enforce “no-poaching” pacts that require their franchisees not to hire away each other’s employees, under the terms of settlements filed in court by Washington state’s attorney general.
Full Content: Bloomberg
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