ATTORNEY GENERAL RAOUL REACHES $1.5 MILLION SETTLEMENT WITH TEMPORARY STAFFING COMPANY OVER USE OF NO POACH AND WAGE FIXING AGREEMENTS

ATTORNEY GENERAL RAOUL REACHES $1.5 MILLION SETTLEMENT WITH TEMPORARY STAFFING COMPANY OVER USE OF NO-POACH AND WAGE-FIXING AGREEMENTS

August 01, 2024

Chicago - Attorney General Kwame Raoul today announced a settlement with Elite Staffing Inc. (Elite) that resolves allegations that Elite entered into no-poach agreements and engaged in wage fixing with two other staffing agencies. The settlement requires Elite to pay $1.5 million to compensate temporary workers who were impacted by the unlawful activity.

"Illinois workers are harmed when employers collude to keep wages down. I am pleased that this settlement includes compensation for workers who were impacted by unlawful activity that limited wages and job opportunities," Raoul said. "My office will continue to enforce laws that protect workers' rights to fair wages and opportunities to better provide for their families."

In 2020, Raoul's office filed a lawsuit against three staffing agencies - Elite, Metro Staff Inc., and Midway Staffing Inc. - and their common client Colony Display LLC (Colony), a manufacturing company. Raoul alleged the staffing agencies formed a no-poach agreement to refuse to solicit or hire each other's employees and to fix the wages paid to employees. Colony allegedly facilitated the unlawful agreements by acting as an intermediary between the parties to communicate about the agreement and assist in enforcing the no-poach agreement. Raoul's lawsuit further alleged that the staffing agencies eliminated competition and harmed temporary workers in Illinois by interfering with their ability to seek better employment opportunities, wages and benefits.

This settlement follows a $1.2 million settlement Raoul's office reached with Colony in 2023.

Under the terms of the settlement approved by the Cook County Circuit Court, Elite agrees to pay $1.5 million that will be used, primarily, to compensate temporary workers impacted by Elite's alleged role in no-poach and wage-fixing agreements. Additionally, Elite agrees to implement measures designed to ensure that affected workers will be free to work for the employer of their choice. The settlement also requires Elite to implement compliance measures and prohibits the company from engaging in certain conduct that would violate antitrust laws.

The settlement agreement advances Attorney General Raoul's ongoing efforts to advocate for workers and oppose unlawful employment practices, such as those that restrict employees' rights and opportunities. Raoul filed a similar lawsuit against another group of staffing agencies and their client, Vee Pak LLC (which does business as Voyant Beauty) which remains pending. Attorney General Raoul also led a bipartisan coalition of attorneys general acting through federal litigation to oppose no-poach agreements that will impact Illinois workers.

Attorney General Raoul encourages workers who believe their rights have been violated to call his Workplace Rights Hotline at 1-844-740-5076 or file a complaint in English or en Español by visiting the Attorney General's website.

This lawsuit is the result of collaboration between Raoul's Antitrust Bureau and the Workplace Rights Bureau. Bureau Chief Elizabeth Maxeiner and Assistant Attorneys General Jennifer Coronel, Richard Schultz, and Daniel Betancourt are handling the case for the Antitrust Bureau. Bureau Chief Alvar Ayala is handling the case for the Workplace Rights Bureau.