AmTrust Title Agrees to Pay $1.25M to New York State Over ‘No-Poach’ Agreements

A title insurer and its agency have agreed to pay $1.25 million in penalties for engaging in “no-poach” agreements with their competitors in likely violation of New York State labor laws.

According to New York Attorney General Letitia James, as a result of her agency’s investigation and this agreement, AmTrust Title Insurance Co. and its First Nationwide Title Agency will also terminate any existing no-poach agreements and cooperate with the state’s ongoing investigations in the industry. The agreement says AmTrust’s “no-poach” pacts have been both verbal and written and in some cases extend past the term of business relationships.

AmTrust agreed to the settlement to resolve the investigation but has neither admitted nor denied the findings in the investigation.

AmTrust issues title insurance policies either through First Nationwide or through independent title insurance agencies that it appoints. According to the attorney general, AmTrust and First Nationwide Title Agency have for years entered into illegal no-poach agreements with their competitors to thwart labor competition.

James said the agreement ends corporate practices that have hurt workers and limited their earning potential. Under a “no-poach” policy, two or more companies vow not to solicit, recruit, or hire each other’s employees.

“Workers should be free to make their own career choices without illegal corporate limitations,” said James. “AmTrust’s no-poach agreements made this impossible and denied workers access to a fair labor market.”

This is not the first time a title insurer in the state has been forced to halt “no-poach” practices. In September 2021, the attorney general ended the use of “no-poach” agreements by Old Republic National Title.

Topics New York