California Attorney General Rob Bonta has filed a lawsuit against Packers Sanitation Services, Inc. LTD., now doing business as Fortrex (PSSI), alleging the company engaged in illegal "no poach" agreements. These agreements purportedly restrict competition and violate the Unfair Competition Law by barring businesses from soliciting or hiring each other's employees. Filed in the San Diego Superior Court, the lawsuit aims for civil penalties, permanent injunctive relief to prevent PSSI from continuing these practices, and restitution for affected employees.
Attorney General Bonta stated, "When companies like PSSI use unlawful business practices to limit employee opportunities, they deny workers the freedom to compete for better wages, benefits, and career advancement. Workers deserve a labor market free from illegal restraints. At the California Department of Justice, we will continue to support workers’ rights by holding accountable any business that undermines a fair labor market."
PSSI is a significant player in the cleaning and sanitation industry, serving meatpacking and food processing facilities, with over 17,000 employees at roughly 500 locations nationwide. In California, PSSI’s contracts cover more than 20 companies, impacting around 6,000 employees with alleged no-poach provisions.
The investigation by the Department of Justice uncovered that 22 out of PSSI's 24 contracts included these restrictive clauses. The implications of such agreements can lead to reduced employee benefits, stagnant wage growth, and limited career progress. Workers are encouraged to report unreasonable restraints to the Attorney General’s office.
Attorney General Bonta's office is actively working to uphold labor rights, safety, and fair market conditions in California. Efforts such as the Worker Rights and Fair Labor Section, the Civil Rights Enforcement Section, and the Antitrust Law Section are all avenues through which Bonta seeks to enforce state labor laws. Past actions by Bonta include litigation against the Trump Administration for wrongful termination of probationary employees, engagement in the West Coast Drywall Lawsuit in 2024 for unpaid wages and overtime, and a landmark investigation into gender discrimination within the National Football League in 2023.
In collaboration with other attorneys general, Bonta has supported Federal Trade Commission initiatives against noncompete agreements, defended transportation workers and immigrant children. In recent years, he has involved himself in cases against McDonald's no-poach practices and against discrimination in hiring in California.
The lawsuit is accessible to the public for further details.