Attorney General Matthew J. Platkin has reached a settlement with Adamas Building Services Inc., a contractor based in Rutherford, New Jersey, and its affiliated businesses, to stop the use of no-hire agreements that limited wage and job growth for workers at the company.
As part of the agreement, Adamas will end all existing no-hire agreements and will not enter into such agreements in the future. No-hire agreements are arrangements between companies that restrict employees from moving to jobs with competitors. These practices can lower wages, reduce competition, and limit job options for workers by preventing them from being hired by other companies.
The settlement follows a joint investigation by the Attorney General’s Office and the Federal Trade Commission into Adamas’ labor practices. The company provides janitorial, security, concierge, parking, and maintenance services to residential and commercial buildings across New Jersey.
“When employers enter into no-hire agreements, employees pay the price. They have fewer job opportunities, lower wages, and weaker benefits. That’s why our office is committed to ending these unlawful labor practices across our state,” said Attorney General Platkin. “The settlement we are announcing today is the latest step we’ve taken to crack down on these illegal agreements and protect the rights of our state’s workers. We will continue fighting on behalf of workers who remain trapped by these unfair agreements.”
The investigation found that Adamas had entered into no-hire agreements with building owners it contracted with, which prevented those clients from hiring Adamas employees directly or indirectly through other service contractors. This arrangement caused difficulties for workers if management changed at their workplace because they could be forced to leave their jobs due to these restrictions.
Under the Assurance of Discontinuance filed as part of this settlement, Adamas agreed not to enter into or enforce any no-hire agreements with competitors or property owners; terminate all ongoing written or verbal no-hire deals within thirty days; and notify the New Jersey Attorney General’s Office if another contractor attempts to establish such an agreement.
Attorney General Platkin has previously taken action against other firms for similar labor market practices involving no-poach agreements.
The Office of the Attorney General investigates violations under the New Jersey Antitrust Act to prevent unlawful restraints on trade and promote competition in New Jersey. Workers who believe their rights have been violated can submit complaints through the Attorney General’s Complaint Portal.
New Jersey was represented in this matter by Antitrust Section Chief David Reichenberg, Assistant Attorney General Brian F. McDonough, Deputy Attorney General Yale Leber, and Deputy Director Sara M. Gregory from the Division of Law’s Affirmative Civil Enforcement Practice Group.
The official website states that New Jersey Attorney General Matthew Platkin protects residents’ lives and property while upholding legal standards throughout all counties in New Jersey. The office holds statewide authority for law enforcement oversight and public safety regulation under its statutory mandate (source). Its services include legal representation for state agencies, law enforcement supervision, crime lab support, victim advocacy programs, consumer protection initiatives (source), as well as providing a primary online portal for public contact (source).
