Senators Elizabeth Warren and Cory Booker are exposing companies’ unfair wage-suppressing policies.
According to the senators, higher ups and CEOs at various franchises implement “no poaching” agreements so that they don’t hire each other’s past employees. This means that, once you’ve worked for one franchise, no other franchise in the agreement will hire you, as if you’re owned by the one franchise that hired you in the first place. This creates an unfair situation where employees aren’t able to apply for jobs that will potentially offer to pay them more.
A new study showed that “no-poaching’ practices are on the rise, and that around 56 percent of major franchisors have no-poaching agreements in their contracts. But Warren and Booker believe that it’s time to get rid of these practices. Just how companies can’t collude to fix prices, they should also not be able to collude to suppress wages through this unfair agreement. Employees should be able to pivot into different franchises, and get paid fairly and appropriately based off their work ethic. The two are proposing a bill that would let the market work, by not allowing people to fix wages. This would give more workers more freedoms to explore workplaces and positions that treat them fairly.