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Class Action Lawsuit Against Carl’s Jr. Filed Over Wage Suppression

Posted on February 22, 2017 Author:

A class action lawsuit has been filed against Carl Karcher Enterprises (CKE) over allegations of wage suppression. CKE is the parent company of Carl’s Jr., a chain of fast food restaurants. According to the lawsuit, filed by one current and one former employee of Carl’s Jr., managers are prevented from taking higher paying positions at other franchises (other Carl’s Jr. locations). The lawsuit alleges CKE’s “no-hire” agreements allow the company to save on labor costs by keeping wages artificially low for managerial workers.

Carl’s Jr. franchises operated by CKE are competitive. By barring managers from transferring to other franchises, managers would be unable to negotiate higher pay by threatening to take their skills to a competitor.

According to attorneys representing the workers, managers are directly employed by the franchises and not CKE. The attorneys argue CKE has no grounds to restrict movement between locations.

What are Employment Law Class Action Lawsuits?

This is a classic example of why workers file class action lawsuits. In this case, the plaintiffs allege CKE’s “no-hire” policy kept wages low for multiple managerial workers. Class action lawsuits are filed on behalf of many workers affected by the same labor violations. Each individual claim in these lawsuits are similar.

There are multiple requirements that must be met before attorneys can file class action lawsuits. We encourage you to familiarize yourself with these requirements by exploring our website. In addition, you may call the Los Angeles employment law attorneys at Kesluk, Silverstein, Jacob & Morrison, P.C. if you believe you have grounds for a class action lawsuit. Our attorneys can review your claim and walk you through the process of what happens next.