Jiffy Lube Files Notice of Agreement to Settle Class Action on Employee No-Poach Policy

Jiffy Lube and a class of employees have filed their notice of agreement to settle a class action over the employer’s no-poach policy as to its employees. The parties intend to present a formal settlement agreement and a motion for the court to approve the settlement agreement within 30 to 45 days. 

The no-poach policy prohibits franchisees from hiring employees who worked at another Jiffy Lube location. The standard Jiffy Lube franchise agreement contained a provision that prevented franchises from soliciting or hiring existing employees at other locations, at least through March 30, 2016. The case is Victor Fuentes et al. v. Jiffy Lube International Inc., case number 2:18-cv-05174-AB, Eastern District of Pennsylvania. 

Victor Fuentes formerly worked at a Jiffy Lube in Pennsylvania when he wanted to transfer to a franchise in Florida to live closer to family members. The Florida franchise would not hire him due to Jiffy Lube’s no-poach policy. As a result, Fuentes filed suit against Jiffy Lube, arguing that the policy was anti-competitive, violated the Sherman Act, and caused employees’ wages and benefits to remain below market rates. He also claimed that Jiffy Lube’s proprietary equipment and necessary training makes it more difficult for employees to transition to jobs at competitors, which further reduces the bargaining power of employees. Fuentes sought treble damages in addition to attorney fees and expenses. 

In 2020, Jiffy Lube filed a motion to dismiss the suit, claiming that it no longer enforced the no-poach policy. 

HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.

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