Guardian and Planned Will End No-Poach Agreements That Suppress

Wages and Limit Competition

View Guardian Settlement | View Planned Settlement

TRENTON – Attorney General Matthew J. Platkin and New York Attorney General Letitia James announced settlements with Guardian Service Industries, Inc. (“Guardian”), and Planned Building Services, Inc. (“Planned”), as well as Planned’s affiliated companies, concerning the use of illegal no-poach agreements.

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.

Both companies provide maintenance, security, and cleaning staff for residential and commercial buildings. A joint investigation by the Attorneys General found that Guardian, headquartered in New York, and Planned, headquartered in New Jersey, entered into no-poach agreements with the buildings they contracted with, preventing clients from hiring the companies’ workers.

The Federal Trade Commission (“FTC”) worked in tandem with New York and New Jersey in these investigations and also approved settlement agreements with Guardian and Planned.

“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,” said Attorney General Platkin. “These illegal agreements reduce workers’ bargaining power as well as their earning potential and career growth. Now more than ever, I remain steadfast in my commitment to fight alongside Attorney General James for workers and put an end to these unjust conditions.”

“When employers agree not to compete over hiring, workers lose out on better jobs, wages, and benefits,” said Attorney General James. “No-poach agreements are illegal, and unfairly limit employees’ opportunities to grow their careers. I will continue to go after companies that use these anti-worker agreements and ensure every worker has a fair shot at better working conditions. I thank Attorney General Platkin and our partners at the FTC for their collaboration in this investigation, which will help workers across both of our states.”

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 will also cooperate with the Attorneys General in related investigations in the building services industry. Guardian and Planned must notify the Attorneys General 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.

New Jersey is represented in this matter by Antitrust Litigation Competition Enforcement Assistant Section Chief Isabella Pitt and Deputy Attorneys General Leslie Prentice and Yale Leber under the supervision of Assistant Attorney General Brian F. McDonough and Deputy Director Sara M. Gregory of the Division of Law’s Affirmative Civil Enforcement Practice Group.

The Office of the Attorney General investigates violations of the New Jersey Antitrust Act to prevent unlawful restraints of trade and to promote competition in the State of New Jersey. Attorney General Platkin invites workers who believe their rights have been violated to file a complaint by visiting the Attorney General’s Complaint Portal.