The Washington Post reports that tax preparer H & R Block has agreed to end it’s no-hire policy, which prohibited workers from switching from one tax office to another.
H&R Block agreed to end this practice after state regulators started investigating other companies, such as Burger King and Panera, for similar policies.
A federal court recently held that “[e]ven a person with a rudimentary understanding of economics would understand” that these no-hire policies reduce employee wages.
Because owners of different H & R Block locations didn’t have to compete for the best workers, the theory goes, the wages of all H & R Block employees were suppressed. The lack of competition in the job market for tax preparation staff would cause everyone’s pay rates to suffer.
Denied a transfer by H&R Block?
If you were denied a transfer from one H & R Block location to another, you may be entitled to a monetary recovery. Free consultation & no obligations. Conversations are confidential.
Washington Attorney General Reaches Settlements with 23 Companies Over No-Hire Policies
The Washington Attorney General has already reached settlements with 23 companies that had adopted no-hire, no-poach, or non-solicitation policies. Poaching and solicitation generally involve one franchise location actively looking to attract the best employees from another franchise location, whereas no-hire policies go a step further and prevent ever hiring a current (or often former) employee of a different location.
Among the companies that have reached settlements with the Washington Attorney General are: Applebee’s, Panera, and Sonic.
The Washington Attorney General has said, “According to economists, these ‘no-poach’ clauses decrease competition, reduce opportunities for low-wage workers and stagnate wages.”
Currently the Washington investigation has focused mostly on fast food chains, but other companies that use franchise models, such as H & R Block, may also get swept in.
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Were you not able to transfer H&R locations?
If you were denied transfer between H&R tax offices, you may have a claim for monetary recovery. Speak to one of our attorneys at no cost to find out.
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