The Federal Trade Commission (FTC) has taken action against Guardian Service Industries, Inc., a building services contractor operating in New York and New Jersey. The FTC ordered Guardian to stop enforcing no-hire agreements that prevent building owners and managers from hiring its employees.
The FTC's complaint alleges that Guardian includes these no-hire clauses in its service agreements with residential building owners. This restricts the ability of Guardian's employees, such as concierge personnel, custodians, and maintenance technicians, to seek better employment terms. The complaint states that these agreements can force employees to leave their jobs if the management of a building changes.
Henry Liu, Director of the FTC’s Bureau of Competition, stated, “Guardian, operating as a middleman, has restricted building owners and competitors from hiring workers while also forcing mostly low wage employees to accept unfair employment terms that restrain job mobility, wage growth, and their economic freedom.” He added that the FTC's action aims to restore competition in the building services industry.
The proposed consent order requires Guardian to cease enforcing no-hire agreements and notify customers and employees that such agreements are void. Guardian must also inform new hires and post notices in employee spaces stating that employment is not subject to a no-hire agreement. Furthermore, Guardian is required to nullify all existing no-hire agreements without imposing fees or penalties on affected parties.
The Commission voted 3-2 to issue the complaint and accept the proposed consent agreement for public comment. Chair Lina M. Khan issued a statement supported by Commissioners Rebecca Kelly Slaughter and Alvaro M. Bedoya. Commissioners Holyoak and Ferguson dissented.
The consent agreement will be published in the Federal Register soon, inviting public comments within 30 days of publication. Comments will be available on Regulations.gov after processing.
The FTC works to promote competition and protect consumers by investigating business practices like those alleged against Guardian.
