The Federal Trade Commission has ordered Guardian Service Industries, Inc., a building services contractor in New York, to stop enforcing its no-hire agreement that prohibits building owners and other service contractors from hiring its employees.
Guardian includes no-hire agreements in its customer service agreements with residential building owners in New York and New Jersey.
Under the FTC’s proposed consent order, Guardian must stop enforcing the no-hire agreement or telling any prospective or current customer that employees are subject to a no-hire agreement.
The Department of Justice has previously ruled against no-poach agreements, including a 2022 case where a nursing services contractor was fined $134,000 for working with a competitor to allocate nurses, fix wages and eliminate competition.