California Attorney General Rob Bonta has reached a settlement with Packers Sanitation Services, Inc. LTD., now operating as Fortrex (PSSI), over allegations that the company used unlawful “no-poach” agreements in its contracts. These agreements prevented workers from seeking employment with other companies and limited their career opportunities.
Under the terms of the settlement, PSSI will inform employees and customers that it has stopped using these no-poach provisions. The company will also pay $500,000 in civil penalties.
“Every worker deserves the right to pursue better opportunities without hidden barriers. No-poach agreements stop workers from exercising that right and hold back their potential — we will not accept that,” said Attorney General Bonta. “At the California Department of Justice, we will continue to hold companies accountable when they undermine workers’ rights.”
PSSI is a cleaning and sanitation firm contracting with meatpacking and food processing facilities throughout California and across the United States. The company employs more than 17,000 workers at around 500 worksites nationwide and has held contracts with over 20 major companies in California, including Foster Farms, Harris Ranch, and Pilgrim’s Pride.
The Attorney General’s office filed a lawsuit against PSSI in April after discovering that 22 out of 24 active contracts in California included no-poach clauses affecting about 6,000 employees. These contractual provisions between employers restricted them from hiring each other’s staff, which can lead to reduced wages and fewer incentives for improving workplace conditions.
Attorney General Bonta emphasized his commitment to defending worker rights and maintaining fair labor practices in California. He stated that his office would continue efforts to protect both workers’ welfare and legitimate businesses within the state.
A copy of the proposed judgment is available online.
