In a decisive move to safeguard workers’ rights and promote fair competition, the Federal Trade Commission (FTC) has ordered (6 January) Planned Building Services and its affiliated companies to halt the enforcement of no-hire agreements that penalize building owners for hiring Planned employees.
The FTC’s complaint, filed against Planned Building Services, Inc., Planned Security Services, Inc., Planned Lifestyle Services, Inc., and Planned Technologies Services, Inc. — collectively known as Planned Companies — highlights how these agreements stifled competition and harmed both workers and consumers. The no-hire clauses, embedded in customer service contracts, effectively prevented employees from seeking better opportunities and hindered building owners from switching to competitors without incurring penalties.
“Planned’s anticompetitive practices have unfairly restrained low-wage workers from seeking higher pay, better benefits, and new job opportunities,” said Henry Liu, Director of the FTC’s Bureau of Competition. “Today’s action underscores the FTC’s commitment to stopping unfair business practices that restrict workers’ economic freedom.”
The Impact on Workers and Competition
Planned’s no-hire agreements impacted a wide range of building service workers — including concierges, janitors, and maintenance technicians — primarily in New York City and New Jersey. The agreements forced workers to leave their jobs if building owners changed service providers, denying them the ability to continue working at the same location under a new contractor.
The FTC’s complaint also noted that these agreements deterred building owners from contracting with competing service providers, as they risked losing experienced staff. This limited competitors’ ability to expand and innovate, ultimately reducing the quality and variety of services available to consumers.
The Proposed Consent Order
Under the FTC’s proposed consent order, Planned must immediately cease enforcing or promoting no-hire agreements. Additionally, the company is required to:
- Notify employees and relevant personnel that the no-hire agreements are no longer in effect.
- Inform new hires and display notices in employee spaces that their employment will not be subject to such agreements.
The FTC’s decision, supported by a unanimous 5-0 vote, reflects a broader effort to combat anticompetitive practices. This marks the agency’s second recent action against no-hire agreements, following collaboration with the attorneys general of New York and New Jersey.
The consent agreement will soon be published in the Federal Register for public comment, allowing stakeholders to weigh in before the order takes effect.
A Broader Message
The FTC’s action sends a clear message to industries employing similar practices. By eliminating no-hire agreements, the agency aims to restore competitive balance, protect workers’ rights, and enhance service quality for consumers.
For more information or to file a complaint, visit the FTC’s website or follow the agency on social media for updates.
