Illinois Manufacturing Company to Pay $625K Settlement Over No-Poach Agreements

Illinois Attorney General Kwame Raoul announced a settlement with Vee Pak LLC, doing business as Voyant Beauty (Vee Pak) that resolves allegations the manufacturing company entered into no-poach agreements with several temporary staffing agencies. The settlement requires Vee Pak to pay $625,000 to compensate temporary workers impacted by the unlawful activity.

Vee Pak is the last remaining defendant in a lawsuit Raoul’s office filed against it and six staffing agencies in 2022. The settlement with Vee Pak means that litigation is now fully resolved, with the office recovering a total of $2.52 million from all defendants.

In 2022, Raoul’s office filed a lawsuit against a group of six staffing agencies and their client, Vee Pak, for entering into a no-poach conspiracy under which the agencies refused to solicit or hire each other’s employees. Vee Pak, a manufacturing company, acted as an intermediary between the parties, facilitating communication about the unlawful agreement and enforcing the no-poach agreement. Raoul’s lawsuit further alleged that the defendants 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, Vee Pak will pay $625,000 that will primarily be used to compensate temporary workers affected by the company’s role in the no-poach agreement. Vee Pak 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 Vee Pak to implement compliance measures and prohibits the company from engaging in conduct that violates antitrust laws.

Source: Illinois Attorney General’s Office

Topics Illinois Manufacturing