Wage Stagnation and Fast-Food Workers: No-Poach Clauses

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According to the New York Times, attorneys general in 10 states are moving to investigate whether a clause in fast-food franchise agreements is preventing workers from switching jobs and, therefore, locking them into low-paying positions and, some economists say, contributing to widespread wage stagnation in the United States.

Questions:
1. Briefly explain how these clauses contribute to wage stagnation.
2. According to the Bureau of Labor Statistics, about how many people work at fast-food restaurants?
3. What is McDonald’s position on these clauses?
4. What restaurants are targeted by the AG inquiry?
5. In your opinion, what was the most interesting point in this article?

Source:
Abrams, R. (2018). ‘No Poach’ Deals for Fast-Food Workers Face Scrutiny by States. July 9 (Retrievable online at https://www.nytimes.com/2018/07/09/business/no-poach-fast-food-wages.html)