Illinois Settles Wage-Fixing Case with Staffing Agency for $1M

Illinois Attorney General Kwame Raoul announced a settlement with Midway Staffing Inc. (Midway) that resolves allegations the temporary staffing agency entered into no-poach agreements and engaged in wage fixing with other staffing agencies. This settlement requires Midway to pay $1 million to compensate temporary workers impacted by the unlawful activity.

Midway was the last remaining defendant in a lawsuit Raoul’s office filed against three staffing agencies and their client. The settlement with Midway means the litigation is now fully resolved, with the office recovering a total of $5.5 million from all four defendants.

In 2020, Raoul’s office filed a lawsuit against three staffing agencies, Midway, Elite Staffing Inc. (Elite), Metro Staff Inc. (Metro Staff), and their common client Colony Display LLC (Colony). 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, a manufacturing company, acted as an intermediary between the parties by facilitating communication about the unlawful agreements and assisting with enforcement of the no-poach agreements. 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.

Under the terms of the settlement, which has been submitted to the court for approval, Midway will pay $1 million that will primarily be used to compensate temporary workers impacted by Midway’s role in no-poach and wage-fixing agreements. Midway must also take steps to ensure that affected workers will be free to work for the employer of their choice. In addition, the settlement requires Midway to implement compliance measures and prohibits the company from engaging in conduct that violates antitrust laws.

Source: Office of the Illinois Attorney General

Topics Illinois