Eateries to allow worker poaching

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 Atty. Gen. Bob Ferguson announced binding agreements with the companies — McDonald’s, Auntie Anne’s, Arby’s, Carl’s Jr., Jimmy John’s, Cinnabon and Buffalo Wild Wings — at a news conference Thursday. McDonald’s had previously announced plans to end the practice.

The “no-poach” policies prevent franchises from hiring workers away from other franchises of the same chain. That has been considered convenient for franchise owners, but it has blocked experienced workers at one franchise from getting a better-paying job at others, potentially keeping tens of thousands of employees nationwide stuck in low-wage positions.

Without access to better job opportunities at other franchises, workers have less leverage to seek raises in their current positions, Ferguson said.

“Our state antitrust laws are very clear: Businesses must compete for workers the same way as they compete for customers,” Ferguson said. “You can’t rig the system to avoid competition.”

In separate agreements filed Thursday in King County Superior Court in Seattle, the companies denied that their policies are illegal but said they wanted to avoid expensive litigation.

On Monday, a coalition of Democratic attorneys general from California, nine other states and Washington, D.C. announced a separate investigation into the nopoach agreements at several chains, including Burger King, Dunkin’ Donuts, Five Guys Burgers & Fries, Little Caesars, Panera Bread and Popeyes Louisiana Kitchen.