Attorney General Bonta Sues National Cleaning and Sanitation Company for “No Poach” Agreements

OAKLAND – California Attorney General Rob Bonta today announced a lawsuit against Packers Sanitation Services, Inc. LTD., now doing business as Fortrex (PSSI), a national cleaning and sanitation company, for allegedly engaging in unlawful “no poach” agreements that restrict competition and harm workers’ rights. Filed in the San Diego Superior Court, the California Department of Justice (DOJ) alleges that PSSI’s use of illegal agreements – where businesses agree not to solicit or hire each other’s employees – violated California law, specifically the Unfair Competition Law. Through this lawsuit, the DOJ is seeking civil penalties, permanent injunctive relief that bars PSSI from using no-poach agreements, and restitution for employees that were harmed due to PSSI’s alleged unlawful conduct.

“When companies like PSSI use unlawful business practices to limit employee opportunities, they deny workers the freedom to compete for better wages, benefits, and career advancement,” said Attorney General Bonta. “Workers deserve a labor market free from illegal restraints. At the California Department of Justice, we will continue to support workers’ rights by holding accountable any business that undermines a fair labor market.”  

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. 

Central to the company’s alleged unlawful conduct is its use of prohibited no-poach provisions. 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. The 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. Workers who are aware that they are subject to an unreasonable or overly restrictive noncompete agreement should report it immediately to the Attorney General’s office at oag.ca.gov/report.

Attorney General Bonta is committed to defending workers' rights, workplace safety, and California's fair and competitive labor market. Through the Worker Rights and Fair Labor Section, the Civil Rights Enforcement Section, and the Antitrust Law Section, Attorney General Bonta enforces California’s laws to protect the welfare of California workers and legitimate businesses operating in California. This year, Attorney General Bonta filed a lawsuit against the Trump Administration for conducting an illegal mass firing of federal probationary employees. In 2024, Attorney General Bonta took action by defending wages and overtime owed in the West Coast Drywall Lawsuit. In 2023, Attorney General Bonta took action to protect workers, launching an historic investigation into gender discrimination in the National Football League, joined 17 attorneys general in supporting the Federal Trade Commission’s proposed rule limiting noncompete agreements, fought for the rights of transportation workers, and immigrant children. In November 2022, Attorney General Bonta joined 21 attorneys general in filing an amicus brief opposing McDonald’s attempt to evade liability for past alleged efforts to stifle competition and undercut wages through the use of “no-poach” agreements. In October 2022, Attorney General Bonta filed an amicus brief in an effort to protect Californians from discrimination in the employment hiring process. 

A copy of the lawsuit can be found here.