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3 Employment Law Changes That Affect Franchisors

Tiomkin Law Offices of Elliott Tiomkin > Legal News  > 3 Employment Law Changes That Affect Franchisors

3 Employment Law Changes That Affect Franchisors

Law360 (February 28, 2020, 5:08 PM EST) — Employee poaching and joint employment have been hot topics among franchisors and franchisees in the last few years. A related topic that has gained increasing traction is employee noncompete clauses. So where are we today on these issues?

1. No Poaching

For decades, it was common for franchisors to include provisions in their franchise agreements limiting the franchisee’s right to hire employees of the franchisor and employees of other franchisees in the same franchise system. These no-poach provisions have come to be viewed as potentially unlawful restraints of trade in violation of federal and state antitrust laws.

Antitrust regulators, not labor…

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