Attorney General Bonta Issues Statement on Favorable Court Decision Regarding McDonald’s Use of “No-Poach” Agreements

OAKLAND – California Attorney General Rob Bonta today issued the following statement in response to the decision by the U.S. Court of Appeals for the 7th Circuit in Delandes v. McDonald’s, holding that a lower court prematurely ruled against former McDonald’s workers who are seeking to hold accountable the fast-food corporation for using “no-poach” agreements. 

“Workers should be able to move freely to another job — one that might pay them better, or have better hours, or better benefits, or be closer to their home. McDonald's use of no-poach provisions in their contracts undermines competition,” said Attorney General Bonta. “I’m pleased that the 7th Circuit ruled in favor of the former McDonald’s workers and allowed their lawsuit to proceed. My office filed an amicus brief in support of their efforts last year, and we continue to stand with them.”

In California, employers, including employers who operate out of state but employ California residents, are generally prohibited from enforcing no-poach or non-compete agreements. No-poach agreements prevent competitors from hiring each other’s workers, and suppress worker mobility, wages, and benefits. Non-compete agreements also prevent worker mobility, and generally require workers to refrain from accepting new employment opportunities in a similar line of work or establishing a competing business. And non-compete agreements are often buried in fine print and go unmentioned in discussions between workers and employers. Even worse, these provisions are sometimes added to the terms of employment after a worker has accepted a job, or even after they have begun work. 

Workers who have been harmed by no-poach agreements or have been wrongly presented with, or have entered into, an unreasonable or overly restrictive non-compete agreement should report it immediately to the Attorney General’s office at oag.ca.gov/report.