AmTrust Is the First in the World to Pay $1.25 Million for Violations of Employee Protection Laws
NEW YORK – New York Attorney General Letitia James has ruled out abusive practices at two insurance companies that have injured workers and reduced their earnings. Over the years, AmTrust Title Insurance Company and First Nationwide Title Agency (collectively AmTrust), entered into illegal agreements with competitors to prevent competition. Thanks to the agreement secured by Attorney General James, AmTrust – the leader in the insurance market in New York – will terminate any existing contracts, pay the government $ 1.25 million, and cooperate with the investigation of Attorney General James. companies.
“Employees should be free to choose their own jobs without the boundaries of the company,” he said Attorney General James. “AmTrust’s unfair contracts have made this impossible and prevented workers from accessing the fair market. As we have shown in repeated actions, my office will continue to protect workers and end illegal practices that result in low wages and reduce opportunities for advancement. hard workers in New York. Anti-competitive behavior will not be tolerated in New York.”
AmTrust offers title insurance through First Nationwide or through independent insurance companies that place them. Direct agents are independent agencies and competitors in the labor market and must compete with workers in terms of wages, benefits, and job opportunities. AmTrust’s “no-poach” policy has prevented this from happening.
A “no-poach” policy is an agreement between two or more companies not to solicit, recruit, or hire each other. In an efficient labor market, employers do not require collective bargaining agreements and, instead, compete by offering higher wages or additional benefits to attract valuable talent to their needs. No-poach contracts reduce competition for workers and distort compensation structures, which harms affected workers.
Attorney General James’ investigation concluded that AmTrust entered into unfair contracts with other insurance companies, and that these contracts hindered labor competition between AmTrust and its competitors, which would affect workers in New York. The investigation did not find any reasons against these agreements.
The agreement ensures competition in the labor market for workers. As a result of Attorney General James’ agreement, AmTrust has agreed to terminate all existing no-kill agreements and cease the practice of no-kill agreements.
Today’s agreement builds on Attorney General James’ previous efforts to protect workers and stop these harmful practices. In September 2021, Attorney General James ended the use of “no-poach” contracts with another major insurance company, Old Republic National Title. In March 2019, Attorney General James and a coalition of attorneys general from around the country reached an agreement with four national franchisors – Dunkin’, Arby’s, Five Guys, and Little Caesars – that ended the use of “no-poach” agreements. In addition, in July 2019, Attorney General James and a coalition of attorneys general submitted a report to the Federal Trade Commission, encouraging cooperation among regulators to protect workers from anti-labor measures, including non-union agreements, which weaken wages, restrict mobility, and limit access to work. advance.
The matter was discussed by Chief Security Adviser Bryan Bloom, Deputy Chief Bureau Amy McFarlane, under the supervision of Chief Bureau Elinor Hoffmann – both of the Antitrust Bureau. The Antitrust Bureau is part of the Division for Economic Justice, which is overseen by Chief Deputy Attorney General Chris D’Angelo and Deputy Attorney General Jennifer Levy.