Article from Los Angeles Times

Suit against Carl's Jr. parent company alleges unfair business practice to suppress wages

By: Hannah Fry of Los Angeles Times

One current and one former Carl’s Jr. employee filed a class-action lawsuit in Los Angeles Wednesday, alleging that Carl Karcher Enterprises LLC and its franchisees colluded to suppress wages by barring management workers from transferring between restaurants.

According to the lawsuit, the Carpinteria-based company uses “no-hire” agreements in an effort to keep workers from seeking raises by threatening to go to another franchisee.  CKE is the parent company of the Carl's Jr. and Hardee's fast-food franchises.

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Article from Courthouse News

Labor Secretary Nominee’s Company Hit With Antitrust Class Action

Article from Courthouse News By: Don Debenedictis 

LOS ANGELES (CN) — Carl Karcher Enterprises, whose CEO Andrew Puzder is President Donald Trumps nominee as secretary of labor, illegally restricts employment and suppresses pay for fastfood managers through contracts that prohibit franchisees from hiring each others workers, Carls Jr. employees say in an antitrust class action. 

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Article from Consumerist

Lawsuit: Carl’s Jr. Blocked Managers From Accepting Jobs With Other Franchisees

From Consumerist By: Laura Northrup

Do Carl’s Jr. restaurants prevent managers from moving between locations owned by different franchisees to keep wages artificially low and to prevent restaurants from competing against each other for the best employees? That’s what one current and one former employee allege in a lawsuit against the fast food chain, calling the policy unfair to those managers. It happens that this lawsuit comes the week before the scheduled confirmation hearings for Andy Pudzer, chief executive of Carl’s Jr. parent CKE Enterprises and President Trump’s nominee for Secretary of Labor. 

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Article from Bloomberg Law

 Carl’s Jr. Shift Leaders Say CKE Restaurants Suppresses Wages

From Bloomberg Law BY: JON STEINGART.  To contact the reporter on this story: Jon Steingart in Washington at jsteingart@bna.com

CKE Restaurants Inc. suppressed fast-food restaurant workers’ pay when it prohibited franchisees from hiring each other’s staff or corporate staff,according to a lawsuit filed in California state court bya pair of current and former shift leaders (Bautista v.Carl Karcher  Enterprises  LLC, Cal. Super. Ct., No.BC649777,complaint filed2/8/17).

‘‘Our impression is that this is a widespread practice that’s reducing wages within the fast-food industry,’’ Nina DiSalvo, an attorney for the current and former Carl’s  Jr.  shift  leaders  bringing  the  case,  told Bloomberg BNA Feb. 9. ‘‘If the market is not free enough to allow workers who are working hard to earn the wages that they do or would in a free market, income inequality will continue to be a rampant problem.’’

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CKE Restaurants

CKE Restaurants Hit With Antitrust Class Action

By: Braden Campbell of Law360, New York (February 8, 2017, 4:26 PM EST) --

Managers at CKE Restaurants Group, the fast food chain headed by Trump labor secretary nominee Andy Puzder, filed an antitrust class action in California state court Wednesday alleging the company and flagship burger brand Carl’s Jr. illegally suppress wages by preventing franchisees from hiring each other’s workers. Though they don’t name him as a defendant, the workers slammed Puzder for publicly touting the value of a free market where businesses compete for labor while at the same time leading a company that artificially — and illegally...

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Press Release

FOR IMMEDIATE RELEASE

Fast Food Workers Allege the Market Is Rigged: No Hire Agreements Undermine Wages and Working Conditions at Carl’s Jr., a CKE Franchise

Los Angeles, February 8, 2017: Today, current and former employees of Carl's Jr. restaurants filed a lawsuit in California State Court alleging that Carl's Jr. and its parent company CKE have engaged in a conspiracy to suppress the wages and working conditions of the restaurant-based managers who run hundreds of Carl's Jr. restaurants across the state. Plaintiffs allege that defendants illegally colluded to restrain trade by agreeing not to hire certain employees from one another. This no hire agreement prevents employees from seeking higher wages and better working conditions at competing Carl’s Jr. restaurants, and allows defendants to pay less and treat employees worse without worrying that employees will leave. Plaintiffs request damages to compensate for wage suppression and ask the court to enjoin this illegal restraint on trade.
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Article from Law360

Shepherds Say They Deserve Chance To Amend Antitrust Suit
By: Kelcee Griffis


Law360, New York (January 27, 2017, 6:04 PM EST) -- Foreign shepherds with temporary work visas objected Thursday to a Colorado federal magistrate’s recommendation that they largely may not amend their proposed antitrust class action accusing ranchers and industry organizations of suppressing their pay, saying the judge had mischaracterized the organizations' role in the hiring process....

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Noticias Univision Colorado

Workers at Denver-based Sundance Steel won $227,112.52 in unpaid overtime and fees for themselves and a class of 111 other workers. Watch plaintiff Miguel Heredia on Noticias Univision Colorado.

 

Article from Law360

Law360, New York (November 23, 2016, 7:32 PM EST) -- A D.C. federal judge on Wednesday reconsidered her earlier opinion in a suit by a proposed class of shepherds that said only U.S. citizens could challenge a U.S. Department of Labor rule setting a pay floor for livestock workers, agreeing that immigrants with work authorization also have standing to do so.

In a September ruling that partially granted the DOL’s attempt to dismiss claims by a group of herders and the Hispanic Affairs Project that a 2015 pay rule...

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Press Release

 

 Low-Wage Colorado Workers Recover $227,112 in Unpaid Overtime and Fees from Unscrupulous Employer

 Denver, November 15, 2016:  Last week, workers at Denver-based Sundance Steel won $227,112.52 in unpaid overtime and fees for themselves and a class of 111 other workers.

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