Burger King Faces Antitrust Lawsuit Over Wage Suppression

A federal judge has ruled that Burger King must face a lawsuit alleging that it suppressed employee wages and mobility through anti-competitive no-hire agreements among its franchisees. U.S. District Judge Jose Martinez determined that the plaintiffs, a group of current and former employees, provided sufficient evidence to proceed with their class action lawsuit, which dates back to 2018. The employees claim these agreements prevented franchises from hiring workers from other locations for six months, violating federal antitrust laws. Burger King has denied wrongdoing, asserting that the plaintiffs have not demonstrated a direct link between the no-hire policy and wage suppression. However, Judge Martinez found the allegations plausible enough to suggest the agreements constituted an unreasonable restraint on the labor market. The lawsuit seeks unspecified damages and class-action status for thousands of similarly situated workers across the U.S.