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US fast-food staff stuck in low-paying jobs because of hidden clauses

Provisions in contracts that franchisees sign with corporate HQs prevent workers from switching jobs

Published Thu, Sep 28, 2017 · 09:50 PM

    DeeperDive is a beta AI feature. Refer to full articles for the facts.

    Orlando, Florida

    THE American fast-food industry is built on two pillars: cheap hamburgers and cheap labour.

    As economists try to understand why wages have stagnated across the country's economy, they are examining the cheap labour part of the equation closely. A few have zeroed in on an obscure clause buried in many fast-food franchise agreements as a possible contributor to the problem.

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