New York Attorney General Letitia James and New Jersey Attorney General Matthew Platkin have reached a settlement with Guardian Service Industries, Inc. The company was found to have used no-poach agreements, which limit employees' job opportunities by preventing competitors from hiring them. These agreements can reduce competition and lower wages.
A joint investigation by the attorneys general and the Federal Trade Commission (FTC) discovered that Guardian, a major building services contractor in the tri-state area, entered into such agreements with buildings they serviced. As part of the settlement, Guardian will cancel any existing no-poach agreements and is prohibited from forming new ones. The company is also required to cooperate with ongoing investigations within the industry.
“When employers agree not to compete over hiring, workers lose out on better jobs, wages, and benefits,” stated Attorney General James. She emphasized her commitment to pursuing companies that employ these "anti-worker" agreements.
Attorney General Platkin echoed this sentiment: “No-poach agreements limit workers' freedom to advance their careers... These illegal agreements reduce workers’ bargaining power as well as their earning potential."
Guardian provides staff for residential and commercial properties, offering services such as pest control, maintenance, security, and cleaning. The investigation revealed that Guardian's no-poach agreements hindered employees' career advancement by preventing clients from hiring them.
The settlement requires Guardian to notify the attorneys general if any competitor attempts to enforce or enter into a no-poach agreement with them over the next decade. Additionally, Guardian must certify compliance with the settlement annually during this period.
This announcement is part of Attorney General James' broader efforts against illegal no-poach practices. Her office has previously acted against similar agreements involving various organizations and industries.
The case was managed by Senior Enforcement Counsel Bryan Bloom along with Assistant Attorney General Michael Schwartz and Deputy Bureau Chief Amy McFarlane under Bureau Chief Elinor Hoffmann of the Antitrust Bureau.