Study shows AG’s no-poach initiative increased wages for low-income franchise workers

SEATTLE — An independent economic study found that Attorney General Bob Ferguson’s No-Poach Initiative directly increased wages for low-income franchise workers nationwide.

No-poach clauses prohibit employees from moving among stores in the same corporate chain, which can limit job and wage growth.

For example, the clauses would stop an employee at one Burger King location from accepting a job at another Burger King franchise location for higher pay.

“Importantly, employees had no knowledge of these agreements between franchisors and the corporate brand,” a news release form the attorney general’s office said.

The two-year project ended no-poach practices in all corporate chains with a presence in Washington — 237 companies — including McDonald’s, Anytime Fitness and Jiffy Lube.

The study looked job postings from 185 corporations that changed their practice as a result of the No-Poach Initiative.

Researchers found that advertised wages went up by more than 3.3% specifically as a result of the initiative. That equals a pay raise of $1,041.71 for employees of those corporations, who earn an average salary of $31,567.

Read more about the No-Poach Initiative here.

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