2 Big Companies Agree To ‘No Poach’ Settlements In NJ, NY

NEW JERSEY — Two of the largest building services contractors in the Tri-State Area have agreed to “no poach” settlements with officials in New Jersey and New York.

Earlier this week, the attorney general’s offices in both states announced details about the settlements with Guardian Service Industries Inc., which is headquartered in New York, and Planned Building Services Inc., which has a headquarters in New Jersey.

Both companies provide maintenance, security and cleaning staff for residential and commercial buildings. View the settlement with Guardian here. View the settlement with Planned here.

No-poach agreements take place when two or more employers agree not to hire each other’s current or former employees. Here’s why the New Jersey Office of the Attorney General says they’re a problem:

“No-poach agreements between companies restrict workers' rights to move from one job to another. They can lower employees’ wages, reduce competition, and restrict employees’ job options by preventing competitors from hiring them.”

A joint investigation by both states found that the two companies entered into no-poach agreements with the buildings they contracted with, preventing clients from hiring the companies’ workers.

As a result of the settlements, the companies will no longer enforce any existing no-poach agreements and are barred from entering into new ones. They also agreed to cooperate with the attorney general offices regarding related investigations in the building services industry, prosecutors said.

Guardian and Planned must notify their attorney general’s office if a competitor attempts to enforce or enter into a no-poach agreement at any point in the next 10 years. In addition, both companies must annually certify continuing compliance with the settlements for the next 10 years, prosecutors said.

“No-poach agreements limit workers’ freedom to advance their careers, restricting their ability to seek better job opportunities and improved wages and benefits in a competitive labor market,” New Jersey Attorney General Matthew Platkin said.

“These illegal agreements reduce workers’ bargaining power as well as their earning potential and career growth,” Platkin said.

Other critics of no poach agreements have included U.S. Sen. Cory Booker of New Jersey, who was one of several federal legislators to propose a bill that would crack down on the practice in 2023.

“Businesses shouldn’t be allowed to collude to suppress workers’ wages,” Booker said. “Corporations already employ a variety of anti-competitive practices and no-poach agreements, often kept hidden from employees, are particularly predatory and serve to keep wages down and limit job opportunities.”

“It’s time to ban these harmful agreements and protect the rights of all workers,” the senator urged.

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