WASHINGTON, D.C. — The Federal Trade Commission (FTC) has directed Planned Building Services, Inc. and its affiliates to stop enforcing restrictive no-hire agreements that, it alleges, have undermined the rights and economic opportunities of building service workers and impeded competition.
Planned Building Services, along with Planned Security Services, Planned Lifestyle Services, and Planned Technologies Services, collectively known as Planned Companies, has been accused of including no-hire agreements in its contracts with building owners throughout New York City and New Jersey. These agreements imposed penalties on building owners if they hired Planned employees. The FTC says this practice restrained workers, including janitors, maintenance technicians, and concierge personnel, from seeking better-paying jobs or securing improved benefits and working conditions.
“Planned’s anticompetitive practices have unfairly restrained low-wage workers from seeking higher pay, better benefits, and new job opportunities,” noted Henry Liu, Director of the FTC’s Bureau of Competition.
The complaint also details how these agreements adversely affected building owners and competitors. Owners faced significant challenges when switching contractors due to the penalties tied to no-hire clauses, effectively deterring fair competition. This, the FTC argues, not only limited contractors’ ability to innovate and meet customers’ demands but also harmed consumers by reducing the availability and quality of building services.
This case marks the second such action by the FTC in collaboration with the attorneys general of New York and New Jersey, signaling a concerted effort to address anticompetitive no-hire practices across industries.
Under the FTC’s proposed consent order, Planned is prohibited from continuing or enforcing no-hire agreements and must inform affected customers and employees of their nullification. Additionally, the company is required to notify all relevant personnel that such agreements are no longer in effect. Notices must also be presented to new hires and displayed in employee areas, ensuring the workforce understands that their employment is not constrained by these restrictions.
The FTC’s decision aims to promote competition and allow workers to seek better job opportunities, rather than being limited by non-competitive agreements.
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