Labor & Employment Law Daily Wrap Up, LITIGATION NEWS, TRENDS—California’s Attorney General settles no-poaching agreement suit against sanitation company, (Dec 5, 2025)
Organizations Mentioned:California Department of Justice | Packers Sanitation Services, Inc. LTD. | State of California
By Patricia K. Ruiz, J.D.
“No-poach agreements stop workers from exercising that right and hold back their potential,” said Bonta.
California Attorney General Rob Bonta recently announced a settlement with a national cleaning and sanitation company. The settlement resolves a lawsuit alleging that the employer utilized no-poach agreements in its contracts in California
The State of California entered into a settlement with Packers Sanitation Services, Inc. LTD., a national cleaning and sanitation company, to resolve allegations that the company used unlawful “no poach” agreements that restrict competition and harm workers’ rights.
Under the settlement, the employer will pay $500,000 in civil penalties and provide notice to employees and customers regarding its discontinued use of the unlawful provision.
Bonta filed a lawsuit against the employer in April 2025 after a California Department of Justice (DOJ) investigation revealed that the employer had implemented a no-poach provision in 22 out of its 24 operative contracts in California, impacting the rights of approximately 6,000 employees working under those contracts.
Companies: Packers Sanitation Services, Inc. LTD.
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