TRENTON, NJ — New Jersey Attorney General Matthew J. Platkin and New York Attorney General Letitia James announced settlements with two building services companies accused of using illegal no-poach agreements that restricted workers’ ability to change jobs and advance their careers.
Guardian Service Industries, Inc., headquartered in New York, and Planned Building Services, Inc., headquartered in New Jersey, along with Planned’s affiliated companies, were found to have entered into no-poach agreements with clients, barring them from hiring the companies’ maintenance, security, and cleaning staff. These agreements violated antitrust laws, limiting job mobility, suppressing wages, and reducing competition in the labor market, according to the attorneys general.
“No-poach agreements limit workers’ freedom to advance their careers, restricting their ability to seek better job opportunities and improved wages,” Attorney General Platkin said. “These illegal agreements reduce workers’ bargaining power as well as their earning potential and career growth.”
As part of the settlements, Guardian and Planned are prohibited from enforcing any existing no-poach agreements and from entering into new ones. The companies must also notify authorities if competitors attempt to enforce such agreements in the next decade and annually certify compliance with the terms of the settlements for 10 years.
The Federal Trade Commission (FTC) collaborated with the attorneys general in investigating the matter and has also approved separate settlement agreements with both companies.
