New Jersey Attorney General Matthew Platkin announced this week that the Garden State is leading a multistate coalition in filing an amicus brief in a case to protect workers from no-poach agreements.

The case centers on the provisions used by tax preparation chain Jackson Hewitt in its franchise agreements, which the group of attorneys general from 18 states and the District of Columbia describe as “presumptively unlawful.”

The class action suit was filed by a group of former Jackson Hewitt tax preparers who say they were harmed by the no-poach agreements, which prohibited corporate-owned and franchise locations from hiring each other’s workers.

In its amicus brief, the coalition argues that no-poach agreements between companies restrict the rights of workers to move from one job to another – noting that such agreements violate antitrust laws, harm workers, and are “naked” horizontal restraints of trade because Jackson Hewitt and its franchisees are direct competitors in the labor market to hire tax preparers.

This effort marks the AG office’s latest foray into these types of workers’ rights and unlawful labor practice issues. Earlier this year, Platkin led a multistate letter in support of the Federal Trade Commission’s proposed rule to eliminate non-compete clauses in most circumstances, and in a 2020 settlement agreement between New Jersey and three major fast-food companies, each agreed to stop using no-poach contracts.

“No-poach contracts are anticompetitive,” said Platkin. “They unfairly restrict workers’ future job prospects, limit their career mobility, and lower their earning potential. Contrast that dismal picture with a competitive labor market, where companies must compete for workers by offering higher compensation and improved terms and conditions in the workplace.”

Jackson Hewitt did not immediately respond to a request for comment.