Search Site

Jiffy Lube Reaches Settlement in $2 Million No-Poach Claim

Jiffy Lube has reached a $2 million settlement in a class action lawsuit. The class consists of about 1,250 Philadelphia-area hourly employees, who claimed the company prohibited franchisees from hiring existing employees in its shops.

Case background

Jiffy Lube asked its franchise owners to agree to a clause in their contracts, preventing them from hiring anyone who had worked at another Jiffy Lube location within the past six months. The plaintiff argued that this violates the Sherman Antitrust Act.

The company denied wrongdoing. However, the settlement said that this allowed franchisees to “pay employees below-market wages without worrying that they would seek employment at another Jiffy Lube franchise with more attractive working conditions.”

The case has settled for $2 million, which will be divided among the 1,250 class members.

Department of Justice examines no-poach agreements

In related news, the Department of Justice is stepping up criminal investigations and prosecutions of companies with no-poach agreements. They have stated these type of agreements are per se violations of antitrust laws. Furthermore, they have issued a memorandum of understanding with the U.S. Department of Labor to exchange information on the subject. This can result in additional investigations by the Department of Labor.

The National Labor Relations Board and the Federal Trade Commission have also entered into a memorandum of understanding, which will form a partnership between the agencies to advance workers’ rights—including one-sided and overly restrictive contract provisions.

These developments are good news for employees, and should put owners and managers on alert. No-poach agreements will affect employee recruitment in the future.

If you’ve been subject to a one-sided no-poach agreement, you may have a valid legal claim. Contact a knowledgeable whistleblower attorney at Kardell Law Group to learn more.

Awards & Honors
Our Office
  • Dallas Office
    4514 Cole Ave
    Dallas, Texas 75205
    Phone: 214-306-8045
    Fax: 469-729-9926
As Seen In
In his new book, "Standing Up to China: How a Whistleblower Risked Everything for His Country," former client & Author, Ashley Yablon, quotes Attorney Steve Kardell about Whistelblower Law.
  • "Steve Kardell was terrific in representing me in some very adversarial discussions with Citigroup and also later represented me in my testimony before the Financial Crisis Inquiry Commission."  -Richard Bowen, Citigroup Whistleblower

  • "Incredible knowledge of employee related concerns and equally brilliant knowledge of health care regulations, standards of practice. I would recommend this firm to anyone."  -V.B.

  • "Reaching out to Steve Kardell was the best decision I made. His ability to provide immediate insight and direction was very powerful, and a huge relief during a very stressful time period. For anyone struggling with a whistleblower situation, I would highly recommend at least speaking with Steve. After a 10 minute call with him, I had a better understanding of what I was dealing with. Even better, he gave me some immediate hope. In the end Steve did a better job than I thought was possible. Steve was able to get in contact with people in my organization, that I didn’t have access to. Because of his years of experience, he already has contacts in many organizations in Dallas. The entire situation was handled peacefully. I was impressed by his ability to “keep the peace”–rather than creating a battle with the organization. The reason I didn’t reach out to a lawyer initially, was because I thought it would mean an immediate end to any hope of a positive relationship with the company. Steve was able to address my concerns, and in the end I was able to continue to work for them."  -KS

  • "Never thought my career would end like it did after 30 years of service. I was part of the first round of the so called reduction of force. I asked myself how can I be part of this with 30 years of seniority. How did they pick these 90 plus employees? Now, the culture of this organization made you question every decision they made. It wasn’t what you knew it’s was a culture of who you know. Nonetheless, I did not accept their severance package. I immediately starting looking for an attorney who would take on my case. After the initial call to Steve I had hope again. He was open and honest about everything and reassured me he would do his best for me, and he did. I had an awesome outcome. Thanks Steve you’re the best."  -S.S.