Burger King, Pizza Hut Agree to Stop Using ‘No-Poaching’ Pacts
- Fast-food outlets will be able to hire away from each other
- Washington state attorney general to continue antitrust probe
Photographer: Daniel Acker/Bloomberg
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Eight fast-food chains including Burger King, Pizza Hut, Papa John’s and Denny’s 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.
The eight chains join 15 others -- among them McDonald’s and Carl’s Jr.-- which had agreed to similar terms in recent months. Together, the agreements ban enforcement nationwide of no-poaching agreements among most of the major fast-food companies that have a presence in Washington, the state’s attorney general, Bob Ferguson, said in an interview Thursday.