In a significant development in the ongoing battle against no-poach agreements, a coalition of 19 Democratic Attorneys General (AGs), spearheaded by New Jersey AG Matthew Platkin, filed an amicus brief in the U.S. District Court for the District of New Jersey. The brief supports former tax preparers for Jackson Hewitt, Inc., who found themselves disadvantaged by no-poach agreements inked with the tax preparation company.
As per the JD Supra report, the AGs argue for the necessity of holding Jackson Hewitt accountable for crafting these no-poach agreements. Such contracts restrict employees’ mobility and limit their capacity to seek better wages or improved conditions from competitors, further aggravating income inequality.
Jackson Hewitt, like many corporations embracing these types of practices, risks attracting the ire of increasingly vigilant regulators and policymakers. The implications of this case could well extend beyond this particular company, potentially provoking a greater industry-wide rethink regarding employment regulations and practices.