Papa Johns forced to pay out $5 million in ‘no-poach’ settlement and the clock is ticking...
Papa Johns will pay $5 million to settle a class action lawsuit regarding unlawful “no-poach” clauses that restricted employee job mobility.Summary
Pizza chain Papa Johns has agreed to a $5 million settlement in a class action lawsuit alleging the use of unlawful “no-poach” and “no-hire” clauses in franchise agreements. These clauses allegedly prevented employees from freely moving between Papa Johns locations, limiting job opportunities and suppressing wages, violating the Sherman Antitrust Act. The settlement impacts approximately 520,000 individuals who worked at US Papa Johns locations between December 18, 2014, and December 31, 2021, and received over $200 in compensation during that period.
Eligible workers can receive a pro-rated cash payment, with amounts based on their earnings during the class period. Papa Johns will also modify its business practices, including providing antitrust training and informing franchises about the ban on no-poaching clauses.
To receive compensation, class members must submit a claim form online or by mail before March 16, 2026. Final approval of the settlement is scheduled for a court hearing on May 5, 2026, after which payments will be distributed.
(Source：The Sun)