FTC Approves Final Order Requiring Building Service Contractor to Stop Enforcing No-Hire Agreement

Today, the Federal Trade Commission finalized a consent order that requires building services contractor Guardian Service Industries, Inc. (Guardian) to stop enforcing a no-hire agreement.

The FTC alleged in a complaint filed in December 2024 that Guardian’s no-hire agreement prohibited building owners and competing building service contractors from hiring Guardian’s employees. For 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 FTC’s complaint alleged.

The final consent order places several requirements and restrictions on Guardian, including ordering Guardian to 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.

Following a public comment period, the Commission voted 3-2 to approve the final order, with Commissioners Holyoak and Ferguson dissenting.