New York Attorney General Letitia James and New Jersey Attorney General Matthew Platkin have announced a settlement with Planned Building Services, Inc. over the use of illegal no-poach agreements. These agreements, which prevent competitors from hiring employees, can negatively impact wages and job mobility. The joint investigation by the attorneys general and the Federal Trade Commission (FTC) found that Planned was involved in such practices.
Planned, a major building services contractor in the tri-state area, has agreed to terminate existing no-poach agreements and is prohibited from forming new ones. The company will also assist with any further investigations into similar practices within the industry.
Attorney General James emphasized the importance of protecting workers' rights: "The people who keep our apartment and office buildings running do essential work every day," she said. "No poach agreements prevent workers from reaching their full potential by making it harder to find new jobs with better pay and benefits."
Attorney General Platkin highlighted how these agreements limit career advancement: "No-poach agreements unfairly restrict workers’ ability to advance their careers, limiting access to better job opportunities, higher wages, and improved benefits," he stated.
Planned provides services like concierge, security, maintenance, and cleaning across 13 states including New York and New Jersey. The investigation revealed that Planned's no-poach agreements hindered employee career prospects by discouraging clients from hiring them directly.
As part of the settlement terms, Planned must notify the attorneys general if any competitor attempts to enforce or create a no-poach agreement over the next decade. They are also required to annually certify compliance with the settlement during this period.
This development is part of ongoing efforts by Attorney General James to eliminate illegal no-poach agreements that harm competition and worker careers. Past actions include settlements with Guardian Service Industries and interventions in other industries such as home care and college athletics.
The case was managed by members of the Antitrust Bureau under Chief Deputy Attorney General Chris D'Angelo’s supervision.