Attorney General James and New Jersey Attorney General Platkin Announce Second Settlement Stopping No-Poach Agreements in Building Services Industry

Planned Building Services Will End No-Poach Agreements That Suppress Wages and Limit Competition

New York Attorney General Letitia James and New Jersey Attorney General Matthew Platkin announced a settlement with Planned Building Services, Inc. and its related companies (Planned) for using illegal no-poach agreements that can lower employees’ wages, reduce competition, and restrict employees’ job options by preventing competitors from hiring them. A joint investigation initiated by the attorneys general and later joined by the Federal Trade Commission (FTC) found that Planned, one of the largest building services contractors in the tri-state area, entered into and enforced no-poach agreements. Planned is the second building services company to recently stop its use of no-poach agreements following the attorneys general’s settlement with Guardian Service Industries. As a result of the settlement, Planned will cancel any existing no-poach agreements and is barred from entering into new ones. Planned will also cooperate with the attorneys general in any ongoing investigation they may conduct in the building services industry.

“The people who keep our apartment and office buildings running do essential work every day,” said Attorney General James. “No poach agreements prevent workers from reaching their full potential by making it harder to find new jobs with better pay and benefits. Planned’s use of these illegal provisions in their employees’ contracts stifled their careers, but now we are putting a stop to them. I will continue to enforce the law to protect workers’ rights, and I thank Attorney General Platkin and our partners at the FTC for their collaboration on this investigation.”

“No-poach agreements unfairly restrict workers’ ability to advance their careers, limiting access to better job opportunities, higher wages, and improved benefits,” said Attorney General Platkin. “These unlawful practices undermine workers’ bargaining power, stifling their earning potential and professional growth. Now more than ever, I remain steadfast in my commitment to fight for workers and put an end to these unjust conditions.”

Planned provides staff for residential and commercial buildings in 13 different states, including New York and New Jersey. Planned employees provide a variety of services, including concierge, security, maintenance, and cleaning. An investigation by the Office of the Attorney General (OAG), the Office of the New Jersey Attorney General, and the FTC revealed that Planned entered into and enforced no-poach agreements with the buildings they operated in. These agreements effectively reduced employees’ career opportunities and wages by deterring Planned’s clients from hiring them.

The settlement ends Planned’s no-poach agreements and prevents them from using similar agreements in the future. Planned must also notify the attorneys general if a competitor attempts to enforce or enter into a no-poach agreement at any point in the next ten years. In addition, Planned must certify to the attorneys general that they are complying with the settlement each year for the next ten years.