Senate proposal would ban non-compete clauses for restaurant workers

Here's some good news for fast food workers: Two Democratic senators say they plan to introduce a bill that would ban businesses from including non-compete clauses in contracts with low-wage employees. According to the Hill, Senator Chris Murphy (Connecticut) and Al Franken (Minnesota) want to make it so that those who earn less than $15 an hour, $31,200 annually, or must work a minimum wage job do not have to agree to contracts that prevent them from working at a similar business.

The move comes after news broke that some Jimmy John's sandwich shops require some workers — many of whom make less than $15 per hour — to sign intense two-year non-compete agreements "prohibiting them from working at retail stores that make at least 10 percent of their sales from sandwiches." The Huffington Post writes that this non-compete is "oppressive" and is "effectively blacklisting [former employees] from whole cities for a period of time."

Last fall, 35 House Democrats sent a letter to the chairwoman of the Federal Trade Commission asking them to look into the issue of non-competes for low wage workers: "Non-competition agreements may sometimes make sense for well-compensated core company leadership, who are privy to company secrets and strategies...However, applying them to a company's entire workforce looks more like bullying under color of law, as well as a violation of labor rights."

Read the Full Article

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

Despite their complaints, customers keep flocking to Chipotle

The Bottom Line: The chain continued to be a juggernaut last quarter, with strong sales and traffic growth, despite frequent social media complaints about shrinkflation or other challenges.

Operations

Hitting resistance elsewhere, ghost kitchens and virtual concepts find a happy home in family dining

Reality Check: Old-guard chains are finding the alternative operations to be persistently effective side hustles.

Financing

The Tijuana Flats bankruptcy highlights the dangers of menu miscues

The Bottom Line: The fast-casual chain’s problems following new menu debuts in 2021 and 2022 show that adding new items isn’t always the right idea.

Trending

More from our partners