No-Poach Agreements Hurt Workers – We’re Fighting Back: Attorney General Bonta Secures Settlement Barring PSSI from Unlawful Labor Practice

SAN DIEGO— California Attorney General Rob Bonta today announced a settlement against Packers Sanitation Services, Inc. LTD., now doing business as Fortrex (PSSI), a national cleaning and sanitation company, resolving allegations that the company used unlawful “no poach” agreements that restrict competition and harm workers’ rights. As part of the settlement, PSSI will provide notice to employees and customers regarding its discontinued use of the unlawful provision, in addition to paying $500,000 in civil penalties. 

“Every worker deserves the right to pursue better opportunities without hidden barriers. No-poach agreements stop workers from exercising that right and hold back their potential — we will not accept that,” said Attorney General Bonta. “At the California Department of Justice, we will continue to hold companies accountable when they undermine workers’ rights.” 

PSSI is a national cleaning and sanitation company that contracts with dozens of meatpacking and food processing facilities in California and hundreds across the country. Nationally, PSSI employs over 17,000 workers across approximately 500 worksites. PSSI has had cleaning contracts with over 20 meatpacking and food processing companies in California, including well-known names such as Foster Farms, Harris Ranch, and Pilgrim’s Pride. 

In April, Attorney General Bonta filed a lawsuit against PSSI regarding the alleged use of unlawful no-poach provisions. So-called no-poach provisions are contractual agreements between employers to not hire each other’s employees. This business practice, often hidden from employees, can have serious implications including artificially lowering employee compensation, reducing incentives for companies to improve working conditions, and limiting employee career growth. DOJ’s investigation revealed that PSSI had implemented a no-poach provision in 22 out of its 24 operative contracts in California, which impacted the rights of approximately 6,000 employees who worked pursuant to those contracts. Today’s judgment, once approved by the court, resolves the allegations stated above. 

Attorney General Bonta is committed to defending workers’ rights, workplace safety, and California’s fair and competitive labor market. Through the Attorney General’s office, including the Worker Rights and Fair Labor Section, Attorney General Bonta enforces California’s laws to protect the welfare of California workers and legitimate businesses operating in the state from standing up for nurses, construction workers, and janitorial workers; to cracking down on no-poach agreements and worker misclassification; to standing up for federal workers amidst the Trump Administration’s trampling of workers’ rights and mass firing agenda. 

A copy of the proposed judgment can be found here.