What ‘No-Poach’ Rules Mean For Fast-Food Workers | Velshi & Ruhle | MSNBC

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" 11 STATE ATTORNEYS GENERAL ARE 11 STATE ATTORNEYS GENERAL ARE INVESTIGATING WHETHER FAST FOOD INVESTIGATING WHETHER FAST FOOD CHAIRMAN OF THE BOARD CHAIRMAN OF THE BOARD CHAINS ARE USING NO-POACH RULES CHAINS ARE USING NO-POACH RULES TO PREVENT EMPLOYEES FROM GOING TO PREVENT EMPLOYEES FROM GOING TO WORK FOR OTHER CHAINS TO WORK FOR OTHER CHAINS A LETTER RELEASED BY THE A LETTER RELEASED BY THE ATTORNEYS GENERAL OUTLINED A ATTORNEYS GENERAL OUTLINED A REQUEST TO CHAINS FOR ANY AND REQUEST TO CHAINS FOR ANY AND ALL SUCH AGREEMENTS ALL SUCH AGREEMENTS THE ATTORNEYS GENERAL WERE MOVED THE ATTORNEYS GENERAL WERE MOVED TO INVESTIGATE IN PART BECAUSE TO INVESTIGATE IN PART BECAUSE OF A 2017 REPORT EXAMINING OF A 2017 REPORT EXAMINING FRANCHISE CONTRACTS

FRANCHISE CONTRACTS THAT REPORT FOUND THAT 32 OUT OF THAT REPORT FOUND THAT 32 OUT OF 40, ROUGHLY 80% OF THE CONTRACTS 40, ROUGHLY 80% OF THE CONTRACTS EXAMINED, CONTAINED NO-POACH EXAMINED, CONTAINED NO-POACH PROVISIONS PROVISIONS THE JUSTICE DEPARTMENT HAS THE JUSTICE DEPARTMENT HAS SPOKEN OUT AGAINST NO-POACH SPOKEN OUT AGAINST NO-POACH AGREEMENTS, SAYING THEY ARE IN AGREEMENTS, SAYING THEY ARE IN CLEAR VIOLATION OF ANTITRUST CLEAR VIOLATION OF ANTITRUST LAWS, RESTRICTING COMPETITION LAWS, RESTRICTING COMPETITION AND DEPRIVING WORKERS OF BETTER AND DEPRIVING WORKERS OF BETTER JOB OPPORTUNITIES JOB OPPORTUNITIES

AND THAT’S THE BIGGEST CONCERN AND THAT’S THE BIGGEST CONCERN STEADY WAGE STAGNATION IN A HIGH STEADY WAGE STAGNATION IN A HIGH GROWTH INDUSTRY ADVERSELY GROWTH INDUSTRY ADVERSELY AFFECTING STATE ECONOMIES AFFECTING STATE ECONOMIES FAST FOOD WORKERS MAKE A MEDIAN FAST FOOD WORKERS MAKE A MEDIAN OF $9

58 AN HOUR, WHICH OF $958 AN HOUR, WHICH TRANSLATES TO 20,730 BUCKS A TRANSLATES TO 20,730 BUCKS A YEAR FOR FULL-TIME WORK YEAR FOR FULL-TIME WORK CEO’S OF SIX TOP AMERICAN FAST CEO’S OF SIX TOP AMERICAN FAST FOOD CHAINS EARN ON AVERAGE 66 FOOD CHAINS EARN ON AVERAGE 66 TIMES THE AMOUNT THAT SOME OF TIMES THE AMOUNT THAT SOME OF THEIR LOWEST PAID EMPLOYEES EARN THEIR LOWEST PAID EMPLOYEES EARN ACCORDING TO A 2016 FINANCIAL ACCORDING TO A 2016 FINANCIAL REPORT REPORT

IN SEPARATE STATEMENTS TO IN SEPARATE STATEMENTS TO DIFFERENT OUTLETS, DIFFERENT OUTLETS, REPRESENTATIVES OF DUNKIN’ REPRESENTATIVES OF DUNKIN’ DONUTS AND WENDY’S SAID THEIR DONUTS AND WENDY’S SAID THEIR COMPANIES DID NOT RESTRICT COMPANIES DID NOT RESTRICT HIRING AMONG OTHER FRANCHISEES HIRING AMONG OTHER FRANCHISEES THE OTHERS DID NOT RESPOND TO A THE OTHERS DID NOT RESPOND TO A REQUEST REQUEST >> IF I WERE ONE OF THEM, I >> IF I WERE ONE OF THEM, I WOULD RESPOND VERY QUICKLY, WOULD RESPOND VERY QUICKLY, BECAUSE EASY EASYIT’S EASY FOR A BECAUSE EASY EASYIT’S EASY FOR A TO WALK WITH THEIR WALLETS

TO WALK WITH THEIR WALLETS >> I’M GOING TO START >> I’M GOING TO START >> SHE’S GOING TO START >> SHE’S GOING TO START

>> WHAT — >> WHAT — >> GOOD QUESTION >> GOOD QUESTION WHAT WHAT >> GO AHEAD

>> GO AHEAD >> WHAT IS GOING ON HERE? >> WHAT IS GOING ON HERE? >> WELL, WE HAVE THIS SETUP, >> WELL, WE HAVE THIS SETUP, THIS CONSTRUCT, AND FRANKLY ALL THIS CONSTRUCT, AND FRANKLY ALL ACROSS OUR SOCIETY, WHERE THE ACROSS OUR SOCIETY, WHERE THE SYSTEM SEEMS TO BE RIGGED SYSTEM SEEMS TO BE RIGGED AGAINST WORKERS, PARTICULARLY AGAINST WORKERS, PARTICULARLY LOW INCOME WORKERS LOW INCOME WORKERS HERE IS BASICALLY HOW THIS DEAL HERE IS BASICALLY HOW THIS DEAL WORKS WORKS

STEPH, YOU OWN FIVE McDONALD’S, STEPH, YOU OWN FIVE McDONALD’S, ALI, YOU OWN FIVE, I OWN FIVE ALI, YOU OWN FIVE, I OWN FIVE AS PART OF THE DEAL WITH OUR AS PART OF THE DEAL WITH OUR WORKERS, AS DICTATED BY THE WORKERS, AS DICTATED BY THE McDONALD’S FRANCHISE, IT SAYS McDONALD’S FRANCHISE, IT SAYS THAT A WORKER WHO WORKS FOR ME THAT A WORKER WHO WORKS FOR ME CAN’T GO, STEPH, AND WORK AT CAN’T GO, STEPH, AND WORK AT YOUR McDONALD’S WHERE THEY MIGHT YOUR McDONALD’S WHERE THEY MIGHT BE ABLE TO EARN A BETTER LIVING, BE ABLE TO EARN A BETTER LIVING, MAKE A FEW MORE BUCKS, BE CLOSER MAKE A FEW MORE BUCKS, BE CLOSER TO BE ABLE TO PICK UP THEIR KIDS TO BE ABLE TO PICK UP THEIR KIDS FROM SCHOOL, BECAUSE OF THESE FROM SCHOOL, BECAUSE OF THESE SO-CALLED NO-POACH AGREEMENTS SO-CALLED NO-POACH AGREEMENTS IT HOLDS DOWN THE WAGES OF THAT IT HOLDS DOWN THE WAGES OF THAT WORKER

WORKER IT HOLDS DOWN THE ENTIRE IT HOLDS DOWN THE ENTIRE ECONOMIC SECTOR ECONOMIC SECTOR AND IT’S JUST FRANKLY UNFAIR AND IT’S JUST FRANKLY UNFAIR

WE SEE TOO MANY EXAMPLES OF THIS WE SEE TOO MANY EXAMPLES OF THIS IN OUR SOCIETY IN OUR SOCIETY AND THAT’S WHY WE’VE COME AND THAT’S WHY WE’VE COME TOGETHER WITH ATTORNEYS GENERAL TOGETHER WITH ATTORNEYS GENERAL TO INVESTIGATE TO INVESTIGATE >> SO WE’VE GOT 4% UNEMPLOYMENT >> SO WE’VE GOT 4% UNEMPLOYMENT IN THIS COUNTRY

IN THIS COUNTRY WE SEE HUNDREDS OF THOUSANDS OF WE SEE HUNDREDS OF THOUSANDS OF JOBS BEING CREATED EVERY MONTH JOBS BEING CREATED EVERY MONTH WE’VE GOT HOPEFULLY A BETTER WE’VE GOT HOPEFULLY A BETTER OPPORTUNITY THAN WE’VE EVER OPPORTUNITY THAN WE’VE EVER SEEN SEEN

BY THE WAY, RECORD CORPORATE BY THE WAY, RECORD CORPORATE PROFITABILITY PROFITABILITY BUT WE DO SEE WAGES HAVING BUT WE DO SEE WAGES HAVING TROUBLE RISING TROUBLE RISING SO YOU SAY IT’S UNFAIR

SO YOU SAY IT’S UNFAIR BUT LET’S SAY YOU FIND CLAUSES BUT LET’S SAY YOU FIND CLAUSES IN ALL THESE FRANCHISE IN ALL THESE FRANCHISE AGREEMENTS THAT ARE TURNED OVER AGREEMENTS THAT ARE TURNED OVER TO YOU TO YOU IS THIS NOT ILLEGAL? IS THIS NOT ILLEGAL? SHOULDN’T IT BE ILLEGAL THAT SHOULDN’T IT BE ILLEGAL THAT WE’RE TAKING AWAY WHAT IS A WE’RE TAKING AWAY WHAT IS A BASIC ELEMENT OF THE AMERICAN BASIC ELEMENT OF THE AMERICAN DREAM, THE IDEA THAT SOMEONE WHO DREAM, THE IDEA THAT SOMEONE WHO EARNS $958 AN HOUR MIGHT BE EARNS $9

58 AN HOUR MIGHT BE ABLE TO EARN $1025 NEXT YEAR OR ABLE TO EARN $1025 NEXT YEAR OR A LITTLE BIT MORE? A LITTLE BIT MORE? IT DOESN’T SEEM LIKE IT SHOULD IT DOESN’T SEEM LIKE IT SHOULD BE ALLOWED BE ALLOWED >> WHEN COMPANIES HAVE NO-POACH >> WHEN COMPANIES HAVE NO-POACH REELS REELS RULES, WHEN THEY HAVE THOSE RULES, WHEN THEY HAVE THOSE AGREEMENTS, IT’S ABOUT EMPLOYEES AGREEMENTS, IT’S ABOUT EMPLOYEES HAVING HIGH-LEVEL SECRET HAVING HIGH-LEVEL SECRET INFORMATION THAT THEY DON’T WANT INFORMATION THAT THEY DON’T WANT TO GO TO THEIR COMPETITORS

TO GO TO THEIR COMPETITORS THAT’S NOT THE CASE THAT’S NOT THE CASE >> NO, THAT’S NOT THE CASE, IT’S >> NO, THAT’S NOT THE CASE, IT’S A NONSENSE ARGUMENT A NONSENSE ARGUMENT

IT WOULD BE ILLEGAL IF McDONALD IT WOULD BE ILLEGAL IF McDONALD McDONALD’S AND, SAY, BURGER KING McDONALD’S AND, SAY, BURGER KING GOT TOGETHER GOT TOGETHER IT SHOULD ALSO BE ILLEGAL IF IT SHOULD ALSO BE ILLEGAL IF MACKcDONALD’S DOES IT TOGETHER MACKcDONALD’S DOES IT TOGETHER IT HOLDS WORKERS BACK

IT HOLDS WORKERS BACK ALI, YOU’RE RIGHT, UNEMPLOYMENT ALI, YOU’RE RIGHT, UNEMPLOYMENT IS LOW IS LOW THERE’S RECORD CORPORATE THERE’S RECORD CORPORATE PROFITS PROFITS

BUT WAGE DISPARITY EXISTS AT BUT WAGE DISPARITY EXISTS AT SUCH A HISTORICALLY HIGH LEVEL SUCH A HISTORICALLY HIGH LEVEL THIS IS A WAY TO HELP CLOSE THAT THIS IS A WAY TO HELP CLOSE THAT WAGE GAP WAGE GAP WHEN YOU HAVE WORKERS WHO ARE WHEN YOU HAVE WORKERS WHO ARE TRYING TO DO THAT BY MOVING UP TRYING TO DO THAT BY MOVING UP IN THE RANKS, BY MAYBE MAKING A IN THE RANKS, BY MAYBE MAKING A FEW MORE BUCKS, BEING CLOSER TO FEW MORE BUCKS, BEING CLOSER TO THEIR KIDS’ SCHOOL OR WHATEVER THEIR KIDS’ SCHOOL OR WHATEVER THE CASE MAY BE, AND THEY’RE THE CASE MAY BE, AND THEY’RE BEING HELD BACK BY THESE BIG BEING HELD BACK BY THESE BIG CORPORATIONS BECAUSE OF THESE CORPORATIONS BECAUSE OF THESE NO-POACH AGREEMENTS, THAT’S NO-POACH AGREEMENTS, THAT’S SIMPLY WRONG

SIMPLY WRONG AND THAT’S THE REASON WHY WE’RE AND THAT’S THE REASON WHY WE’RE INVESTIGATING AND WE’RE GOING TO INVESTIGATING AND WE’RE GOING TO GET TO THE BOTTOM OF THIS GET TO THE BOTTOM OF THIS >> BUT McDONALD’S HAS SAID IT’S >> BUT McDONALD’S HAS SAID IT’S VOLUNTARILY REMOVED THESE TYPES VOLUNTARILY REMOVED THESE TYPES OF CLAUSES FROM ITS FRANCHISE OF CLAUSES FROM ITS FRANCHISE AGREEMENTS IN 2017 AGREEMENTS IN 2017

IS THAT WHAT YOU’RE HOPING FOR, IS THAT WHAT YOU’RE HOPING FOR, THE PARENT COMPANIES COME DOWN THE PARENT COMPANIES COME DOWN AND SAY TO THE FRANCHISEES, AND SAY TO THE FRANCHISEES, DON’T DO THIS, WHETHER IT’S DON’T DO THIS, WHETHER IT’S McDONALD’S EMPLOYEES OR BURGER McDONALD’S EMPLOYEES OR BURGER KING EMPLOYEES, YOU CAN’T BE KING EMPLOYEES, YOU CAN’T BE DOING THIS, IT’S UNFAIR? DOING THIS, IT’S UNFAIR? >> RIGHT >> RIGHT LOOK, McDONALD’S HAS TAKEN SOME LOOK, McDONALD’S HAS TAKEN SOME STEPS STEPS BUT WE WANT ALL THESE COMPANIES BUT WE WANT ALL THESE COMPANIES TO TAKE IT

TO TAKE IT WE BELIEVE, BASED ON OUR WE BELIEVE, BASED ON OUR PRELIMINARY RESEARCH, THAT IN PRELIMINARY RESEARCH, THAT IN THE FAST FOOD FRANCHISE THE FAST FOOD FRANCHISE INDUSTRY, 80% OF THESE WORKERS INDUSTRY, 80% OF THESE WORKERS ARE FORCED TO BE PART THESE ARE FORCED TO BE PART THESE NO-POACH AGREEMENTS NO-POACH AGREEMENTS AND IN NON-FAST-FOOD SECTOR, IN AND IN NON-FAST-FOOD SECTOR, IN OTHER INDUSTRIES, IT’S ABOUT OTHER INDUSTRIES, IT’S ABOUT 58% 58%

FOR EXAMPLE, PEOPLE WHO WORK AT FOR EXAMPLE, PEOPLE WHO WORK AT JIFFY-LUBE, THAT’S ONE EXAMPLE JIFFY-LUBE, THAT’S ONE EXAMPLE SO WHY SHOULD THESE WORKERS, WHO SO WHY SHOULD THESE WORKERS, WHO HAVE NO IDEA THAT THEY ARE HAVE NO IDEA THAT THEY ARE CAPTIVE TO THESE KINDS OF CAPTIVE TO THESE KINDS OF NO-POACH AGREEMENTS, BE HELD TO NO-POACH AGREEMENTS, BE HELD TO THAT SORT OF STANDARD THAT IS THAT SORT OF STANDARD THAT IS REALLY JUST PRIMARILY DICTATED REALLY JUST PRIMARILY DICTATED BY CORPORATE GREED? BY CORPORATE GREED? THAT IS SIMPLE WRONG THAT IS SIMPLE WRONG SO, YES, WE WANT TO CHANGE SO, YES, WE WANT TO CHANGE CORPORATE BEHAVIOR

CORPORATE BEHAVIOR WE WANT TO DO AWAY WITH THESE WE WANT TO DO AWAY WITH THESE NO-POACH AGREEMENTS IN THE FAST NO-POACH AGREEMENTS IN THE FAST FOOD INDUSTRY AND ACROSS FOOD INDUSTRY AND ACROSS FRANCHISES FRANCHISES IT UNFAIRLY TARGETS ESPECIALLY