Today, New York Attorney General Letitia James announced an agreement with Old Republic National Title Insurance — one of the nation’s four largest title insurance companies — that ends the company’s practice of no-poach agreements. Under the agreement, Old Republic has agreed to a monetary payment of $1 million, to terminate any existing no-poach agreements, and to cooperate with Attorney General James’ ongoing investigations in this area.
A “no-poach agreement” is an agreement between two or more companies not to solicit, recruit, or hire each other’s employees. This significantly stifles competition in a well-functioning labor market where employers typically compete by offering higher wages or enhanced benefits to attract the most valuable talent. By instilling a no-poach agreement, it reduces career opportunities for employees and disrupts the normal compensation-setting mechanisms.
“Workers are the lifeblood of New York, and New Yorkers are entitled to free and fair labor markets,” said Attorney General James. “For years, Old Republic stifled competition in the labor market, but this agreement ends the company’s illegal conduct, while putting all businesses on notice that no-poach agreements will not be tolerated in New York state. My office will continue to investigate no-poach agreements that potentially harm New York workers, and fight to end these anticompetitive practices once and for all.”
Attorney General James’ investigation found that Old Republic entered into no-poach agreements with multiple agencies, effectively barring the competition for employees between them. The only parties who stand to benefit from this deal are the companies themselves rather than the people who work for them. Employers are essentially locking their workers in, making it harder for them to leave and advance their careers. Without competition, employees experience depressed wages, restricted job mobility, and limited opportunities for advancement. The investigation did not identify any pro-competitive justifications for these agreements.
The agreement between Attorney General James and Old Republic helps increase competition in the labor market by ending no-poach agreements with competitors and ensures cooperation with Attorney General James through the duration of the investigation. Additionally, the $1 million in retribution will dissuade other companies from following suit.
This is not the first time Attorney General James has addressed no-poaching agreements. In March 2019, Attorney General James and a coalition of attorney generals from around the nation entered an agreement with four national food franchises — Dunkin’, Arby’s, Five Guys, and Little Caesars — to end their use of no-poach agreements. Also, in July 2019, Attorney General James and a coalition of attorney generals urged the collaboration between regulators to protect workers from anti-competitive labor practices, including no-poach agreements.
To read the full agreement between Attorney General James and Old Republic National Title Insurance, click the link provided.
