Fast food giant Burger King must face a lawsuit accusing it of restricting worker mobility and suppressing wages at its nationwide restaurant franchisees, a federal judge ruled on Wednesday.
U.S. District Judge Jose Martinez in Miami said in his ruling, opens new tab that workers in the proposed class action had provided enough factual support to let their lawsuit move forward for now.
The agreements generally barred franchises from hiring a worker from another, at least for six months.
Burger King and attorneys for the workers did not immediately respond to requests for comment. Burger King has denied any wrongdoing.
The plaintiffs include current and former Burger King employees who worked at restaurants in Illinois and other states from at least 2010, court papers show.
The lawsuit is seeking unspecified monetary damages and class-action status on behalf of thousands of Burger King workers.
“In a properly functioning and lawfully competitive labor market, Burger King and its franchisees would compete for labor,” the lawsuit said.
In seeking dismissal of the lawsuit, Burger King said the workers had provided no evidence that the no-poach agreement kept wages lower than they otherwise would have been.
Martinez in his order said the workers had plausibly shown that the Burger King no-hire agreement was an “unreasonable” restraint on the labor market.
Last year, the U.S. Supreme Court turned down a bid by McDonald’s to shut down a similar proposed class action claiming it violated antitrust laws by prohibiting franchisees from poaching employees from other McDonald’s restaurants.
The case is Jarvis Arrington et al v. Burger King Worldwide et al, U.S. District Court, Southern District of Florida, No. 1:18-cv-24128-JEM.
For plaintiffs: Joseph Meltzer of Kessler Topaz Meltzer & Check, and Richard McCune of McCune Wright Arevalo
