Illinois Attorney General Kwame Raoul announced a settlement with Vee Pak LLC, doing business as Voyant Beauty, resolving allegations that the manufacturer took part in no-poach agreements with temporary staffing agencies.
The settlement requires Vee Pak to pay $625,000 to compensate temporary workers affected by the unlawful conduct.
Vee Pak was the last remaining defendant in a 2022 lawsuit filed by Raoul’s office against the company and six staffing agencies. With this agreement, the litigation is fully resolved. The attorney general’s office has recovered a total of $2.52 mn from all defendants.
The 2022 lawsuit alleged that six staffing agencies and their client, Vee Pak, entered into a no-poach conspiracy. Under the arrangement, the agencies agreed not to solicit or hire each other’s employees.
Vee Pak, a manufacturing company, allegedly acted as an intermediary between the staffing agencies. Raoul’s office said the company helped coordinate communications about the unlawful agreement and enforced the no-poach arrangement.
The lawsuit alleged that the defendants reduced competition for labour and harmed temporary workers in Illinois. The conduct limited workers’ ability to seek better jobs, higher wages, and improved benefits.
Under the settlement terms, which have been submitted to the court for approval, Vee Pak will pay $625,000. Most of that money will 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 affected workers remain free to work for the employer of their choice. That condition goes to the practical damage of no-poach arrangements: workers lose options, not only money.
The settlement also requires Vee Pak to implement compliance measures. The company is barred from conduct that violates antitrust laws.
According to Beinsure, the case adds to broader enforcement pressure around labour-market restraints. No-poach agreements, especially in temporary staffing, can depress wages and weaken worker mobility without appearing in consumer prices. Regulators are watching that corner more closely now.
