Court Rules McDonald’s No-Poach Clause Lawsuit Can Proceed, Impact on Workers’ Wages Highlighted

The U.S. Court of Appeals for the Seventh Circuit recently made a significant ruling in the lawsuit Deslandes v. McDonald’s USA LLC. The lawsuit alleges that a no-poach clause included in McDonald’s franchise agreements violates antitrust laws, ultimately suppressing wages for fast food workers through decreased competition. This ruling has opened the door for the case to be remanded back to the trial court, shedding light on the increasing focus on no-poach agreements and their impact on workers’ rights and wages.

Lawsuit Details: Deslandes v. McDonald’s USA LLC

In the lawsuit, the employees argue that the no-poach clause in McDonald’s franchise agreements hampers competition in the fast-food industry. This, in turn, limits workers’ bargaining power and suppresses wages. By preventing workers from freely switching jobs within McDonald’s franchises, the no-poach clause eliminates competition among franchises for talented workers. This lack of competition allows employers to keep wages low, exacerbating income inequality within the industry.

U.S. District Court’s decision

Initially, the U.S. District Court denied classifying the case as a class-action lawsuit. However, the Seventh Circuit has suggested that it may be wise for the lower court to reconsider its decision in light of the need for a remand. This indicates a potential reconsideration of the case’s classification and opens the possibility for a broader impact on a larger group of employees affected by the no-poach clause.

Government initiatives against no-poach agreements

The federal government has been actively pursuing antitrust legislation and focusing on eradicating no-poach agreements to enhance workplace competition for employees. In January, the Federal Trade Commission (FTC) released a proposed rule that aims to ban companies from requiring non-compete agreements for new hires. The rule is intended to remove barriers that restrict employees from seeking better job opportunities and higher wages.

Proposed rule’s impact on existing agreements

If implemented, the proposed rule would not only prevent companies from including non-compete agreements in new hires’ contracts but would also force employers to rescind existing non-compete agreements. This would give workers greater mobility and flexibility to pursue better job prospects and negotiate improved working conditions. FTC Chair Lina Khan has maintained that non-compete contracts hinder workers’ ability to switch jobs freely, depriving them of higher wages and better working environments.

National Labor Relations Board’s stance on non-compete provisions

The National Labor Relations Board (NLRB) has also taken a stance against non-compete provisions. In a May memo, NLRB General Counsel Jennifer Abruzzo stated that these provisions not only violate the National Labor Relations Act but also impede workers’ ability to resign or seek employment with a local competitor that might offer better working conditions. The NLRB’s position reinforces the need to address these provisions to safeguard workers’ rights.

Impact of McDonald’s No-Poach Clause

McDonald’s no-poach clause has faced criticism for its alleged detrimental effects on fast-food industry workers’ wages. By limiting competition among franchises, this clause effectively prevents workers from leveraging multiple employment options to negotiate higher pay and better benefits. The suppression of competition perpetuates low wages within the industry, exacerbating income inequality among workers.

Significance of the Seventh Circuit’s ruling

The Seventh Circuit’s decision to remand the lawsuit to trial court holds significant implications for workers’ rights and protections. It signals a growing recognition of the negative impact of no-poach agreements on employees’ wages and opportunities for advancement. By allowing the lawsuit to proceed, the court has reinforced the importance of addressing no-poach agreements and their implications within labor markets.

The recent ruling by the Seventh Circuit in the Deslandes v. McDonald’s USA LLC lawsuit demonstrates a renewed focus on no-poach agreements and their impact on workers’ wages and rights. The allegations made by the employees highlight how these clauses suppress wages by restraining competition in the fast-food industry. With the proposed rule by the FTC and the NLRB’s stance against non-compete provisions, it is clear that efforts are being made to promote workplace competition and protect workers’ interests. The implications of this ruling extend beyond McDonald’s, shedding light on the broader issue of no-poach agreements and the need for greater attention to workers’ rights and wages.

Explore more

Maryland Data Center Boom Sparks Local Backlash

A quiet 42-acre plot in a Maryland suburb, once home to a local inn, is now at the center of a digital revolution that residents never asked for, promising immense power but revealing very few secrets. This site in Woodlawn is ground zero for a debate raging across the state, pitting the promise of high-tech infrastructure against the concerns of

Trend Analysis: Next-Generation Cyber Threats

The close of 2025 brings into sharp focus a fundamental transformation in cyber security, where the primary battleground has decisively shifted from compromising networks to manipulating the very logic and identity that underpins our increasingly automated digital world. As sophisticated AI and autonomous systems have moved from experimental technology to mainstream deployment, the nature and scale of cyber risk have

Ransomware Attack Cripples Romanian Water Authority

An entire nation’s water supply became the target of a digital siege when cybercriminals turned a standard computer security feature into a sophisticated weapon against Romania’s essential infrastructure. The attack, disclosed on December 20, targeted the National Administration “Apele Române” (Romanian Waters), the agency responsible for managing the country’s water resources. This incident serves as a stark reminder of the

African Cybercrime Crackdown Leads to 574 Arrests

Introduction A sweeping month-long dragnet across 19 African nations has dismantled intricate cybercriminal networks, showcasing the formidable power of unified, cross-border law enforcement in the digital age. This landmark effort, known as “Operation Sentinel,” represents a significant step forward in the global fight against online financial crimes that exploit vulnerabilities in our increasingly connected world. This article serves to answer

Zero-Click Exploits Redefined Cybersecurity in 2025

With an extensive background in artificial intelligence and machine learning, Dominic Jainy has a unique vantage point on the evolving cyber threat landscape. His work offers critical insights into how the very technologies designed for convenience and efficiency are being turned into potent weapons. In this discussion, we explore the seismic shifts of 2025, a year defined by the industrialization