Our antitrust attorneys have filed a class action lawsuit against Jiffy Lube for allegedly forcing the owners of Jiffy Lube franchise locations to sign a no-hire clause providing that each Jiffy Lube franchise-owner would not hire or solicit employees of a different Jiffy Lube franchise-owner. In practice, what this means for employees is that if they worked at one Jiffy Lube location, they may not have been able to work or get hired at another Jiffy Lube location.
Click here to read a copy of the Jiffy Lube no poach lawsuit complaint.
Lawsuit: Jiffy Lube Allegedly Stops Workers from Moving Locations, Suppressing Wages
Jiffy Lube has allegedly prevented workers from switching locations by including a no-poach clause in its standard franchise agreement, which employees would likely never see. Economists generally agree that if employers agree not to hire each other’s workers, wages are suppressed. The general principle is that if employers have to compete for top workers, they would have to increase their pay to keep them there. Instead, Jiffy Lube allegedly facilitated an agreement amongst itself and all franchisees not to compete for employees.
Vox reports that “[m]ore and more companies have monopoly power over workers’ wages. That’s killing the economy.”
Jiffy Lube and its franchisees may not have needed to pay its maintenance and service technicians as much money if it didn’t need to compete for workers.