Lauren Godles is a student at Harvard Law School.
Yesterday, shift leaders at Carl’s Jr. filed a complaint on behalf of themselves and those similarly situated alleging various antitrust violations by Carl’s Jr. Restaurants and CKE, of which Andrew Puzder is CEO. The complaint was filed in California Superior Court.
The complaint is based on a “no hire” policy extending to all CKE franchises, under which franchisees must agree not to hire or seek to hire anyone who works as a shift leader or any higher position at a CKE restaurant or has worked at a CKE restaurant in the prior two years. The policy might not be a problem if all the workers were employed by CKE, but “CKE and Puzder have gone out their way” to stress that the franchises are not part of a single entity that hires and fires workers (thereby avoiding some federal and state labor protections). According to the complaint, the effect of the “no hire” policy has been to “suppress the wages of the restaurant-based managers” and “worsen[ ] working conditions” by diminishing competition between the restaurants.
The complaint was filed just as Puzder’s confirmation hearing was rescheduled for the fourth time to Feb. 16. A spokesman for Puzder said that the delays were “prompted by Puzder’s need to divest financial holdings that the Office of Government Ethics judged a conflict of interest.” If confirmed, Puzder would have to sell his stake in the fast-food companies, which are valued at 10-50 million dollars.
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August 31
California lawmakers and rideshare companies reach an agreement on collective bargaining legislation for drivers; six unions representing workers at American Airlines call for increased accountability from management; Massachusetts Teamsters continue the longest sanitation strike in decades.
August 29
Trump fires regulator in charge of reviewing railroad mergers; fired Fed Governor sues Trump asserting unlawful termination; and Trump attacks more federal sector unions.
August 28
contested election for UAW at Kentucky battery plant; NLRB down to one member; public approval of unions remains high.
August 27
The U.S. Department of Justice welcomes new hires and forces reassignments in the Civil Rights Division; the Ninth Circuit hears oral arguments in Brown v. Alaska Airlines Inc.; and Amazon violates federal labor law at its air cargo facility in Kentucky.
August 26
Park employees at Yosemite vote to unionize; Philadelphia teachers reach tentative three-year agreement; a new report finds California’s union coverage remains steady even as national union density declines.
August 25
Consequences of SpaceX decision, AI may undermine white-collar overtime exemptions, Sixth Circuit heightens standard for client harassment.