Franchise ‘No-Hire’ Agreement Class Actions and the Single Enterprise Defense
Seyfarth Shaw has some advice for franchisor when considering their legal strategy in “no-hire” agreement class actions: franchisor employers should assess whether the joint employer risk is worth accepting in order to pursue the single-enterprise defense.”
In its Workplace Class Action Blog, the firm discusses class actions claiming that provisions contained in franchise agreements prohibiting the hiring of employees of other intrabrand franchisees without the consent of their employer violate the antitrust laws.
The authors discuss the single-enterprise defense, potential joint employer liability, and other defenses.
