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First American Financial Corporation, the nation’s second-largest title insurance company, will pay $4.5 million to the state of New York to resolve allegations that it entered into illegal “no-poach” agreements with competitors in which they mutually refrained from hiring employees. agreed to pay.
settlement, announced on Friday New York Attorney General Letitia James reached similar settlements with each of the other “big four” title insurance underwriters, Fidelity National Financial. Old Republic National Title Insurance Company and stewart title guarantee corporation.
Letitia James
“First American entered into secret agreements with competitors that undermined workers’ career opportunities and kept wages unfairly low,” James said in a statement. “Workers in New York should be empowered to grow in the careers of their choice, rather than being held back by illegal agreements designed to reduce opportunities for workers.”
The first Americans — last week Reportedly $1.5 billion Third-quarter revenue from title insurance and services business neither admits nor denies allegations; settlement “In order to solve the problem, [Office of the Attorney General’s] Just a survey. ”
The New York State Attorney General’s Office announced that it has reached a $13.75 million settlement with seven title insurance companies, including underwriters, related to non-purchase allegations. AmTrust Title Insurance Co., Ltd. and title insurance agency First National Title Agency. Kensington Vanguard National Land Services LLC.
In its settlement with First American, prosecutors in the Attorney General’s Antitrust Division found that the company entered into oral and written anti-smuggling agreements with title agents and other title insurance underwriters in violation of state and federal antitrust laws. He claimed to have tied it.
First American issues title insurance policies directly and through independent title agents. Prosecutors say both direct and agency companies compete for employees based on pay, benefits and career opportunities.
“Direct sales companies and agencies have business models that rely heavily on employee business relationships,” prosecutors said. “Hiring and retaining talented employees is therefore critical to the competitive importance of our companies and agencies.”
New York state prosecutors have argued that no-poach agreements “reduce competition for employees, have the potential to disrupt the normal compensation-setting mechanisms that apply in the labor market, and provide affected employees with competitively sensitive information.” They may be deprived of access to jobs and better jobs, which could put them at a disadvantage.” chance. ”
New York State has begun cracking down on employment practices in the title insurance industry. Union with other states It aims to reach an agreement to end the use of “no-poaching” agreements by four national fast food franchisors – Dunkin’, Arby’s, Five Guys and Little Caesars – in 2019.
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