The Federal Trade Commission ordered building services contractor Adamas Amenity Services LLC and its affiliated businesses to immediately cease enforcement of anticompetitive no-hire agreements that restricted worker mobility across New Jersey and New York City. The enforcement action represents the latest move by the FTC under Chairman Andrew N. Ferguson to crack down on labor practices that limit wages and job opportunities for American workers.
According to the FTC's complaint, Adamas used no-hire agreements that prevented building owners and management companies from directly hiring workers employed by the contractor without facing significant financial penalties. These restrictions primarily affected low-wage workers performing janitorial, front desk, security and other building services.
The FTC alleges these agreements limited workers' ability to negotiate higher wages, better benefits, and improved working conditions. For employees working in buildings that changed management, the no-hire agreements could force them to leave their jobs entirely rather than continue working for a new contractor at the same location.
"American workers have a right to pursue job opportunities that offer them higher pay and better benefits," said Daniel Guarnera, Director of the FTC's Bureau of Competition. "Yet anticompetitive no-hire agreements, just like the ones Adamas uses, prevent workers from realizing their full earning potential."
Under the proposed FTC order resolving the complaint, Adamas must immediately stop enforcing all existing no-hire agreements. The company cannot prevent building owners from hiring its workers directly or indirectly through competing building service contractors.
The enforcement action continues an aggressive approach by the FTC toward anticompetitive labor practices under the Trump-Vance administration. "The Trump-Vance FTC took action today against Adamas and will continue to take enforcement action to protect workers from harmful labor practices that lower paychecks and limit opportunities," Guarnera said.
Chairman Ferguson has made investigating and prosecuting deceptive, unfair, and anticompetitive labor-market practices a priority for the agency. Recent FTC actions have included enforcement against Gateway Services, Inc., which resulted in stopping the enforcement of nearly 1,800 noncompete agreements. The agency has also issued public calls to identify anticompetitive noncompetes and launched a cross-agency Joint Labor Task Force.
The FTC worked closely with the New Jersey Attorney General's office throughout the Adamas investigation, demonstrating coordination between federal and state authorities on labor market enforcement.
No-hire agreements like those used by Adamas create artificial barriers in the labor market that can suppress wages and limit worker mobility. By preventing building owners from competing for workers' services, these agreements reduce the natural market forces that would otherwise drive up compensation and improve working conditions.
For the building services industry specifically, these restrictions can create particular hardships. When buildings change management companies, workers may face the choice between losing their jobs entirely or accepting potentially worse terms with their current employer rather than transitioning to work directly for the new building management.
The enforcement action reflects broader concerns about labor market concentration and practices that may artificially suppress wages. No-hire agreements, along with noncompete clauses and other restrictive employment practices, have drawn increased scrutiny from antitrust enforcement agencies.
Building owners and management companies affected by Adamas' previous agreements will now have greater flexibility to hire workers directly or through competing contractors. This change should increase competition for workers' services and potentially lead to improved wages and working conditions in the affected markets.
The case also demonstrates the FTC's continued focus on protecting lower-wage workers who may have limited bargaining power and fewer resources to challenge restrictive employment practices. Janitorial, security, and front desk workers often face particular challenges in changing jobs or negotiating better terms.
While the proposed order requires Adamas to cease enforcement of no-hire agreements, the company has not admitted wrongdoing as part of the settlement. The agreement represents a typical resolution for FTC enforcement actions where companies agree to change practices without admitting liability.
The enforcement action sends a clear signal to other companies in the building services industry and beyond that the FTC will continue investigating and challenging labor practices it views as anticompetitive. Companies using similar no-hire agreements or other restrictive employment practices may face increased scrutiny.
For workers in affected industries, the action demonstrates federal agencies' willingness to intervene when employment practices may artificially limit wages or job mobility. The case provides a template for how the FTC will approach similar restrictions in other sectors of the economy.