FTC Takes Action Against Building Service Contractor’s No-Hire Agreement - Stop Enforcing No-Hire Restrictions

Sep 16, 2026

Federal Trade Commission action orders building services contractor Guardian Service Industries, Inc. to stop enforcing a no-hire agreement that prevents building owners and managers from hiring Guardian’s employees. The FTC alleges Guardian’s no-hire clauses in customer service agreements restrict hundreds of employees’ ability to negotiate wages, benefits, and working conditions, even after contract termination. The proposed consent order requires Guardian to cease communications and void existing agreements, with customer and employee notices.

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FTC Takes Action Against Building Service Contractor’s No-Hire Agreement

Complaint Allegations and Impact on Employees

Proposed Consent Order Requirements

Voting and Public Comment Process

Note on Administrative Complaints

For Release FTC Takes Action Against Building Service Contractor’s No-Hire Agreement Guardianʼs no-hire agreement limits workersʼ ability to negotiate for higher wages, better benefits, and improved working conditions December 4, 2024 Tags: Competition | Bureau of Competition | Nonmerger | Professional Services LNon-Health Care) The Federal Trade Commission today ordered building services contractor Guardian Service Industries, Inc. LGuardian) to stop enforcing a no-hire agreement that prohibits building owners and managers from hiring Guardianʼs employees. In a complaint filed against Guardian, the FTC alleges that Guardian—which operates in New York and New Jersey—includes no-hire agreements in its customer service agreements with residential building owners. These agreements prohibit building owners and competing building service contractors from hiring Guardianʼs employees. For hundreds of Guardian employees—which include concierge personnel, custodians, and maintenance technicians—these no-hire agreements limit their ability to negotiate for higher wages, better benefits, and improved working conditions, the FTCʼs complaint alleges. Under Guardianʼsno-hire agreement, building managers are prohibited from hiring Guardian employees even after the termination of a buildingʼs contract with Guardian. Given Guardianʼs no-hire agreement, in some circumstances, employees are forced to leave their jobs if the building they work at changes management, the FTCʼs complaint states. “Guardian, operating as a middleman, has restricted building owners and competitors from hiring workers while also forcing mostly low wage employees to accept unfair employment terms that restrain job mobility, wage growth, and their economic freedom,” said Henry Liu, Director of the FTCʼs Bureau of Competition.“Todayʼs action restores competition by creating a level playing field for employers in the building services industry. The FTC will continue to investigate business practices that restrict accessible opportunities for workers.” Under the FTCʼs proposed consent order , Guardian must cease and desist from, directly or indirectly, enforcing a no-hire agreement or communicating to any prospective or current customer that a Guardian employee is subject to a no-hire agreement. Guardian canʼt maintain or attempt to maintain, nor can it enforce or attempt to enforce, a no-hire agreement, the consent order states. The FTC worked closely with the New York and New Jersey Attorneys General offices throughout the investigation. Additionally, under the proposed consent order, Guardian must: Provide notice to customers and Guardian employees with a copy of the FTCʼs order that shows that the no-hire agreement is no longer in effect. Post clear and conspicuous notice to each new Guardian employee upon hire and in any shared Guardian employee space, such as a break room, stating that their employment will not be subject to a no-hire agreement. Take all steps necessary to void and nullify all existing no-hire agreements and notify Commission staff in writing that all existing no-hire agreements are voided and nullified. Not require any person who is party to an existing no-hire agreement to pay any fees or penalties relating to a no-hire agreement. The Commission vote to issue the complaint and accept the proposed consent agreement for public comment was 3 ] 2, with Commissioners Holyoak and Ferguson dissenting. Chair Lina M. Khan issued a statement joined by Commissioners Rebecca Kelly Slaughter and Alvaro M. Bedoya. Commissioners Holyoak and Ferguson each issued dissenting statements. The FTC will publish the consent agreement package in the Federal Register shortly. Instructions for filing comments appear in the published notice. Comments must be received 30 days after publication in the Federal Register. Once processed, comments will be posted on [Regulations.gov](Regulations.gov). NOTEo The Commission issues an ad

FAQs

What action did the FTC order Guardian Service Industries, Inc. to take?

The FTC ordered Guardian to stop enforcing a no-hire agreement that prohibits building owners and managers from hiring Guardian’s employees.

How did the FTC say the no-hire agreement affected workers?

The FTC alleged the agreement limited employees’ ability to negotiate higher wages, better benefits, and improved working conditions, and could force employees to leave if building management changed.

What does the proposed consent order require Guardian to do?

Guardian must cease and desist from enforcing the no-hire agreement, stop related communications to customers, notify customers and employees, post notices to new employees, void existing no-hire agreements, and ensure no fees or penalties are imposed under those agreements.

Sep 16, 2026

Upload by Sophia Brooks