Planned Companies; Analysis of Agreement Containing Consent Order To Aid Public Comment
Published Date: 1/6/2025
Notice
Summary
The Federal Trade Commission is asking the public to weigh in on a deal with Planned Companies that settles claims of unfair business practices. This agreement aims to stop those unfair actions and keep competition fair. Comments are open until February 5, 2025, so now’s the time to speak up before any changes take effect.
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Analyzed Economic Effects
4 provisions identified: 4 benefits, 0 costs, 0 mixed.
Ban on No-Hire Contract Terms
The proposed Order would prohibit Planned Companies from entering into, maintaining, or enforcing any contract terms that limit a customer’s ability to solicit, recruit, or hire Planned employees (commonly called No-Hire Agreements). The Order also bars Planned from telling customers or others that any Planned employee is subject to a No-Hire Agreement.
Employee Notice and Job Mobility Postings
Planned must provide written notice to employees who are subject to No-Hire Agreements and post clear, conspicuous notices that employees are not subject to No-Hire Agreements and may seek or accept a job with the building directly or with any company that wins the building’s business. These requirements appear in Paragraphs III.B and III.C of the proposed Order.
Written Notice to Customer-Contractors
Planned must give written notice to customers that had No-Hire Agreements telling them the restriction is null and void and that any customer or a subsequent building-services contractor is no longer subject to those restrictions or penalties. This notice requirement is set out in Paragraph III.A of the proposed Order.
Order Length: Ten-Year Term
The proposed Order would remain in effect for ten years. Other provisions in the Order set timelines and ongoing compliance obligations tied to that term.
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