A federal judge in Miami, in the US state of Florida, has ruled against Burger King concerning a lawsuit that accuses the fast-food giant of suppressing wages through anti-competitive no-hire agreements across its franchise network.
The decision is a pivotal moment in a legal battle that began in 2018.
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Reuters reports that US District Judge Jose Martinez found the plaintiffs – current and former Burger King employees – had presented enough factual allegations to progress with their lawsuit.
The employees allege that the company’s no-hire agreements among its US franchisees limited job mobility and violated federal antitrust laws by keeping wages low.
Their complaint details how these no-hire agreements allegedly prohibited franchises from hiring employees from other Burger King outlets within six months.
The plaintiffs, who worked in states including Illinois, argue that such practices restricted their employment opportunities and suppressed their earnings, contravening antitrust regulations.
They seek unspecified damages and class-action status to represent thousands of workers in similar positions.
Burger King has consistently denied any misconduct, arguing that the plaintiffs have not shown a direct link between the no-hire policy and suppressed wages.
The company requested the dismissal of the case, citing a lack of evidence that the agreements impacted employee compensation.
However, Judge Martinez’s ruling indicates that the allegations “plausibly suggest” the no-hire provisions unfairly restricted the labour market.
In September 2025, Burger King took legal steps in India by filing a lawsuit against the Jaipur-based eatery Burger Farm, accusing it of trademark infringement. The contention rose from claims that Burger Farm’s logo closely resembles the emblem of Burger King.
