Attorney General Letitia James and New Jersey Attorney General Matthew Platkin announced a settlement on Monday with Planned Building Services, Inc., one of the largest building services contractors in the tri-state area, over illegal no-poach agreements that suppressed wages and restricted job opportunities for workers.
The settlement follows a joint investigation by the New York and New Jersey attorneys general, later joined by the Federal Trade Commission (FTC), which revealed that Planned had entered into and enforced agreements preventing clients from hiring its employees. These no-poach agreements effectively reduced career mobility, suppressed wages, and stifled competition in the building services sector.
“No-poach agreements prevent workers from reaching their full potential by making it harder to find new jobs with better pay and benefits,” said Attorney General James. “Planned’s use of these illegal provisions in their employees’ contracts stifled their careers, but now we are putting a stop to them.”
Attorney General Platkin echoed these concerns, stating, “These unlawful practices undermine workers’ bargaining power, stifling their earning potential and professional growth.”
Planned provides services, including security, maintenance, and cleaning, across 13 states, including New York and New Jersey. The investigation found that Planned’s no-poach agreements limited employment opportunities for workers and deterred clients from hiring them directly.
Under the terms of the settlement, Planned is required to terminate any existing no-poach agreements and is barred from entering into new ones. The company must also notify the attorneys general if a competitor attempts to enforce or establish a no-poach agreement over the next decade and provide annual compliance certifications for the same period.
This settlement marks the second recent victory for James and Platkin against no-poach agreements in the building services sector, following a similar settlement with Guardian Service Industries in December.
The resolution adds to Attorney General James’ ongoing efforts to eliminate no-poach agreements across industries, including title insurance, home care services, and collegiate athletics.
The case was managed by Senior Enforcement Counsel Bryan Bloom, Assistant Attorney General Michael Schwartz, and Deputy Bureau Chief Amy McFarlane, under the supervision of Bureau Chief Elinor Hoffmann of the Antitrust Bureau.
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