California Attorney General Suing Cleaning Company Over ‘No-Poach’ Deals

California’s Attorney General has filed a lawsuit against a national sanitation company for allegedly using “no-poach” agreements.

California Attorney General Rob Bonta announced the lawsuit this week against Packers Sanitiation Services, Inc. LTD., doing business as Fortrex (PSSI). The suit, filed in San Diego Superior Court, alleges that PSSI used illegal agreements in which businesses agree not to solicit or hire each other’s employees, a violation of California law, specifically the Unfair Competition Law.

The lawsuit seeks penalties, a ban on the practice and restitution for affected employees.

PSSI is a national cleaning and sanitation company with 500 worksites and more than 17,000 employees nationwide. In California, it has contracted with more than 20 meatpacking and food processing companies.

PSSI allegedly used illegal “no-poach” provisions in 22 of its 24 active California contracts. According to the Attorney General, this has affected roughly 6,000 workers through hidden agreements that can suppress wages, limit career growth and reduce incentives to improve working conditions.