The Federal Trade Commission (FTC) has ordered Adamas Amenity Services LLC and its affiliated businesses to stop enforcing no-hire agreements that the agency says have restricted job mobility for workers in New Jersey and New York City. According to the FTC’s complaint, these agreements prevented building owners and management companies from directly hiring employees of Adamas without facing significant penalties.
The FTC alleges that these no-hire agreements affected mainly low-wage workers such as janitorial, front desk, and security staff. The restrictions limited their ability to seek better wages, benefits, or working conditions.
To resolve the complaint, Adamas must immediately end enforcement of all existing no-hire agreements under a proposed order from the FTC.
“American workers have a right to pursue job opportunities that offer them higher pay and better benefits. Yet anticompetitive no-hire agreements, just like the ones Adamas uses, prevent workers from realizing their full earning potential,” said Daniel Guarnera, Director of the FTC’s Bureau of Competition. “The Trump-Vance FTC took action today against Adamas and will continue to take enforcement action to protect workers from harmful labor practices that lower paychecks and limit opportunities.”
Under Chairman Andrew N. Ferguson’s leadership, the FTC has prioritized investigating unfair labor-market practices. Recent actions include stopping Gateway Services, Inc. from enforcing nearly 1,800 noncompete agreements and launching a Joint Labor Task Force with other agencies.
The investigation was conducted in coordination with the New Jersey Attorney General’s office. The FTC claims that Adamas’ no-hire clauses also prevented building owners from indirectly hiring former employees through competing contractors. This could force employees out of work if building management changed hands.
Additionally, these agreements may have discouraged competitors from bidding for contracts due to concerns about losing experienced staff members if they won new business.
As part of the proposed consent order, Adamas is required to notify customers who were subject to a no-hire agreement within the past three years that those restrictions are now void. The company must also clearly inform employees they are free to seek employment directly with buildings or any company awarded contracts for those services.
The Commission voted 2-0 in favor of issuing the complaint and accepting the proposed agreement for public comment. There will be a 30-day period for public feedback before final approval on Regulations.gov.
According to standard procedure, an administrative complaint is issued when there is reason to believe legal violations have occurred and further proceedings are in the public interest. A finalized consent order carries legal weight regarding future conduct by those involved.
The FTC continues its mission to promote competition while protecting consumers through education and enforcement activities.
