WASHINGTON - The Open Markets Institute, Towards Justice, and the National Legal Advocacy Network filed a brief in support of McDonald’s workers in Deslandes v. McDonalds.  

Our brief argues that “McDonald’s and its franchisees established and enforced a collusive system to restrict their employees’ labor market freedom, thereby unfairly and illegally robbing them of bargaining power,” which has significantly harmed workers. This “collusive arrangement . . . cost each of the affected workers, on average, annual wages equal to one month’s car payment or rent for many of them.” The challenged restraints inflicted significant injury on workers and lack credible business justifications. They should be categorically illegal. 

While antitrust litigation is important and can protect workers from restraints on their mobility, rulemaking by the Federal Trade Commission is essential. In March 2019, the Open Markets Institute, as part of a broad labor and public interest coalition, petitioned the FTC to prohibit non-compete clauses and related restraints on workers. In July 2021, President Biden called for FTC rulemaking on non-competes in his landmark Executive Order on Promoting Competition in the American Economy. The FTC should act quickly to prohibit these coercive contracts for all workers. 

Read full brief below or download here.