Jarvis Arrington, et al v. Burger King Worldwide, Inc., et al, No. 20-13561 (11th Cir. 2022)Annotate this Case
Plaintiffs here—proposed class representatives of former employees of various Burger King franchisees—plausibly alleged that Burger King and its franchisees engaged in “concerted action” in violation of Section 1 of the Sherman Act. The district court, though, dismissed the Plaintiffs’ complaint on the basis that Burger King and its franchisees constituted. A single economic enterprise and were not capable of the concerted action that a Section 1 violation requires.
The Eleventh Circuit reversed and remanded, concluding that the complaint plausibly alleged concerted action. The court explained that the No-Hire Agreement removes that ability and also prohibits the hiring of any Burger King employee for six months after they have left another Burger King restaurant. In this way, the No-Hire Agreement “deprive[s] the marketplace of independent centers of decisionmaking [about hiring], and therefore of actual or potential competition.” For this reason, the court wrote, that the Plaintiffs have plausibly alleged that the No-Hire Agreement qualifies under Section 1 of the Sherman Act as “concerted activity,” and the Plaintiffs sufficiently alleged that aspect of a Sherman Act Section 1 violation.