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State Officials Launch Probe Into Fast-Food Chains' 'No-Poach' Rules

Officials from ten states and the District of Columbia sent letters to several chains requesting information about "no-poaching" rules.
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A group of attorneys general is investigating whether some of the biggest fast-food chains in the U.S. are using "no-poach" rules to stop employees from switching franchises.

Officials from ten states and the District of Columbia sent letters to several chains requesting copies of their franchise agreements and other information about "no-poaching" rules.

Those chains include Arby's, Burger King, Dunkin' Donuts, Five Guys Burgers and Fries, Little Caesars, Panera Bread, Popeyes Louisiana Chicken and Wendy's.

Under "no-poach" rules, franchisees agree not to hire workers away from each other. The officials argue those rules violate antitrust laws and can prevent workers from getting promotions and earning a better living. And some experts say the practice can drag wages down too.

The fast-food chains have until Aug. 6 to submit copies of their franchise agreements.