Hartley LLP filed an antitrust case alleging H&R Block conspired with its franchisee-owned locations to restrict movement of employees between them. The complaint alleges that since 2009 H&R Block corporate-owned stores and H&R Block franchises, which are explicit competitors pursuant to the franchise contracts, agreed not to solicit or hire each other’s employees, including managers and tax preparers. The effect of the agreements was to severely restrict the ability of employees to move between jobs or to negotiate better wages, particularly given their unique skillset with the H&R Block model that would have made the defendants natural alternative employers for their employees. This restriction allowed defendants to depress wages across all H&R Block employees. H&R Block generates over $3 billion in annual revenue through the services its employees deliver.
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