By: Tracie Carter
A New Jersey building services contractor has agreed to stop using no-hire agreements after a state investigation found the practice unlawfully limited workers’ job mobility and wages.
According to a statement from the New Jersey Attorney General’s Office, Attorney General Matthew J. Platkin announced a settlement with Adamas Building Services Inc. and its affiliated businesses that permanently bars the company from maintaining or enforcing no-hire agreements.
Under the agreement, Adamas must immediately terminate all existing no-hire arrangements and is prohibited from entering into similar agreements in the future.
These agreements prevented employees from being hired by competing contractors or even by the buildings where they worked, limiting job opportunities and wage growth.
The settlement stems from 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 properties across New Jersey.
Investigators found that Adamas’ contracts restricted building owners and management companies from hiring its workers directly or through competitors, sometimes forcing employees out of jobs when properties changed management.
As part of the agreement, Adamas must also notify the Attorney General’s Office if it becomes aware of any attempt by another contractor to impose similar no-hire restrictions.
State officials said the action is part of an ongoing effort to eliminate unfair labor practices that suppress wages and limit worker mobility throughout New Jersey.