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Insurance agency must pay $1 million for illegal no-poach agreements



“Hard work and experience in any career is supposed to help employees grow and achieve better wages and opportunities,” said James.

“However, when companies illegally collude and make no-poach agreements, they hold workers back. No-poach agreements have become a systemic problem in the title insurance industry and that is why my office has been focused on rooting out this unacceptable practice to protect workers. New Yorkers deserve fair pay for their hard work and experience, and their career growth should never be threatened by companies cutting illegal deals with competitors.”

In Canada, the amendments to the Competition Act criminalizing non-affiliated employers for entering into wage-fixing or no-poaching agreements took effect on June 23.

Fines for no-poach agreements

Kensington’s underwriters’ direct agents and independent agencies are competitors in the labor market and should be able to compete for employees on the basis of salaries, benefits, and career opportunities. However, the company’s no-poach policies with its underwriters prevented that from happening, said James.

The sum that Kennington must pay pushes the total amount secured by James from title insurance companies for illegal no-poach agreements to $9.25 million, said the OAG.

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