Jiffy Lube Facing Lawsuit Over “No-Poach” Agreements

Attorneys working with ClassAction.org would like to speak to anyone who worked at a Jiffy Lube shop at any time since 2010.

A class action lawsuit has been filed alleging that the company incorporated illegal “no-poach” clauses into its franchise agreements and that these provisions financially and professionally harmed Jiffy Lube workers. Now, attorneys working with ClassAction.org have opened their own investigation into the issue and want to hear from people currently and formerly employed by Jiffy Lube.

What Does the Lawsuit Say Exactly?

Jiffy Lube has allegedly required franchisees to sign agreements that state they cannot solicit or hire anyone who works or has worked at another Jiffy lube shop within the last six months. These are known as “no-poach” agreements and, according to the lawsuit, are illegal under federal antitrust law.

How Do No-Poach Agreements Harm Employees?

The lawsuit claims that Jiffy Lube’s no-poach agreements harm workers by unfairly suppressing their wages and limiting their ability to secure better positions, benefits and working conditions.

How Does This Happen Exactly?

Jiffy Lube’s “no-poach” agreements eliminate competition between different shops by restricting their ability to hire workers with the training, experience or work ethic that the franchise owner may want for his or her business, the lawsuit claims. At the same time, however, franchise owners are also protected from having their best employees poached by other Jiffy Lube shops, according to the suit.  

The result of this, the lawsuit says, is that Jiffy Lube shop owners are able to keep their best workers without having to pay market wages or provide them with attractive working conditions or benefits.

In other words, if Jiffy Lube franchises were at risk of having their best employees “poached,” they would be forced to pay higher wages and provide competitive promotion opportunities to keep these workers from leaving, as most other businesses do.

What’s even worse, the lawsuit says, is that workers who look for opportunities outside the Jiffy Lube franchise are often limited in their options “as the marketable skills they acquire through their work…primarily have value only to other [Jiffy Lube] shops and do not easily transfer to other automotive service shops or businesses.”

What Could I Get from a Class Action Lawsuit?

The lawsuit says it hopes to recover damages for “years of wage suppression.” A successful case could also result in an order prohibiting Jiffy Lube from enforcing any agreement that unreasonably restricts competition.

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