Earlier this year, the Federal Trade Commission (FTC) decided to abandon a Biden-era rule that would have barred virtually all non-compete agreements across the country. Despite this, we cautioned at the time that the FTC still intended to scrutinize business practices that the commission views as anti-competitive. The FTC has now provided a glimpse into one such practice.
On December 19, 2025, the FTC announced an enforcement action against business-to-business no‑poach practices in the New York area. In Adamas Amenity Services LLC, et al., the FTC alleges that Adamas Amenity Services LLC and affiliated building-services entities used contract terms that restricted customers and competing vendors from soliciting or hiring their employees during and after their employment, which unlawfully restrained competition for labor and harmed workers.
Specifically, the FTC alleges that Adamas routinely included no-hire clauses in service contracts with residential building owners and management companies, which limited employee mobility and suppressed employees’ ability to negotiate for higher pay, better benefits, and improved working conditions. The FTC also alleges that these provisions negatively impacted Adamas’s customers because they impaired customers’ willingness to switch to competing service vendors, thereby reducing rivals’ incentives to invest and meet demand for higher quality or more varied services.
In light of these no-poach provisions, the FTC claims that Adamas’s...
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