US judge rules against Burger King in wage-suppression lawsuit

USA – A federal judge in Miami has ruled against Burger King in a lawsuit alleging the fast-food chain suppressed worker wages through anti-competitive no-hire agreements within its franchise network.

The recent ruling by US District Judge Jose Martinez has marked a pivotal moment in an ongoing legal battle involving Burger King that began in 2018.

According to Reuters, the judge found that plaintiffs—comprising current and former Burger King employees—had presented sufficient factual allegations to move forward with their lawsuit against the company.

The lawsuit centers on claims that Burger King’s use of no-hire agreements among its US franchisees violated federal antitrust laws. These agreements allegedly restricted job mobility and kept wages artificially low.

The plaintiffs detailed how the no-hire clauses were designed to prevent one franchise from hiring employees of another Burger King outlet for at least six months.

Workers from several US states, including Illinois, argued that these provisions reduced their employment opportunities and suppressed their earnings in ways that contravened fair labor practices and competition laws.

The plaintiffs are seeking unspecified damages and class-action certification to represent thousands of similarly affected workers.

Burger King has maintained its denial of any wrongdoing, asserting that the plaintiffs failed to directly link the no-hire policy to wage suppression.

The company also requested the case’s dismissal, citing insufficient evidence. However, Judge Martinez ruled that the allegations plausibly suggest the provisions may have unfairly limited the labor market, thus allowing the case to proceed.

Meanwhile, Burger King is also engaged in a trademark infringement case in India.

In September 2024, the fast-food giant filed a lawsuit in the Delhi High Court against Burger Farm, a Jaipur-based eatery.

The case involves allegations that Burger Farm’s logo closely resembles that of Burger King, creating potential consumer confusion.

The American company argued that Burger Farm not only copied its branding but also attempted to mimic its business model.

Although Burger King sought an injunction, Justice Mini Pushkarna deferred the decision and recommended mediation.

Burger Farm has indicated its openness to modifying its logo and reaching a settlement, but it also contested the injunction, noting its widespread presence in India. The case is part of a broader pattern of trademark disputes involving Burger King in the region.

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