Whether the past use of no poach provisions in franchise agreements violated antitrust law.
January 10, 2023
The Restaurant Law Center and co-amici filed a brief urging the U.S. Court of Appeals for the Seventh Circuit to affirm the judgment of the U.S. District Court granting summary judgment because there was too much competition in the labor market to support the former employees’ antitrust allegations. The Restaurant Law Center argued that a core element of a labor antitrust claim is premised on defining a relevant geographic market in a way that comports with industry realities. One brand should not be considered the entire market as employees could go work for the myriad of other fast food restaurants in the area where they live. In addition, we highlighted the importance of franchising generally, which requires franchisors to exert some control over their brands through ancillary restraints.