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FTC orders a building services contractor to end no-hire agreement

  • 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.

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