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TRENTON – Attorney General Matthew J. Platkin today announced an agreement with Adamas Building Services Inc., a building services contractor, and its affiliated businesses to bar it from using no-hire agreements, which unlawfully limited wage and job growth at the company.
Under the settlement announced today, Adamas has agreed to terminate all existing no-hire agreements and agreed not to maintain any such agreements in the future. No-hire agreements between companies restrict workers’ rights to move from one job to another. These agreements violate workers’ rights, and they can lower employees’ wages, reduce competition, and restrict employees’ job options by preventing competitors from hiring these workers.
The settlement announced today is the result of a joint investigation conducted by the Attorney General and the Federal Trade Commission into the use of no-hire agreements by Adamas, which is based in Rutherford and contracts with residential and commercial buildings in New Jersey to provide janitorial, security, concierge, parking, and maintenance services.
“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 Attorney General’s investigation found that Adamas entered into no-hire agreements with the buildings it contracted with, preventing Adamas’ clients from hiring Adamas’ employees. Adamas’ no-hire agreements also prevent building owners and management companies from indirectly hiring Adamas’ employees through any competing building service contractor. The investigation found that Adamas’ employees suffer hardship if the building where they work changes management because the no-hire agreement may force them to leave their jobs.
Under the Assurance of Discontinuance, Adamas is subject to several conditions, including:
- Agreeing not to enter into, maintain, or enforce any no-hire agreements with competitors, including residential and commercial properties;
- Terminating any ongoing no-hire agreements, whether written or verbal, within thirty days; and
- Promptly notifying the Office of the New Jersey Attorney General if it learns of any effort by another contractor to enter into or enforce a no-hire agreement.
Attorney General Platkin has previously taken action against firms that have undertaken deceptive, unfair, and anticompetitive labor market practices that harm workers. This includes settlements in November 2024 with Guardian Service Industries, Inc. and Planned Building Services, Inc., involving no-poach agreements.
OAG investigates violations of the New Jersey Antitrust Act to prevent unlawful restraints of trade and to promote competition in the State of New Jersey. Attorney General Platkin invites workers who believe their rights have been violated to file a complaint by visiting the Attorney General’s Complaint Portal.
New Jersey is 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 of the Division of Law’s Affirmative Civil Enforcement Practice Group.
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