Three Staffing Companies Sued For Colluding To Suppress Wages
Elite Staffing, Metro Staff, and Midway Staffing allegedly teamed up with their shared client to fix pay at below-market rates and lock temporary workers out of better jobs. Illinois’s highest court just ruled the scheme is not protected by a legal loophole the companies spent years hiding behind.
The Non-Financial Ledger: What It Actually Costs a Person
Imagine you work a warehouse job placing retail fixtures for home improvement stores. You are a temporary worker, which means no job security, no guaranteed hours, and almost certainly no benefits. You show up, do the physical labor, and get paid whatever the agency set as your rate before you walked in the door. You had no say in that number.
Now imagine you find out the staffing agency that placed you at this job quietly made a deal with two of its direct competitors: all three agencies agreed to pay workers assigned to this particular client at the same suppressed rate. There was no bidding war for your labor. There was no incentive for any of these companies to offer you more money to stay or attract you away. The competition that would normally push wages up was simply switched off, by agreement, behind closed doors.
You hear that maybe the other agency down the street pays better for similar work. You think about leaving. Then you find out that agency already agreed it won’t hire you. Not because you did anything wrong. Not because of your skill level or your record. They agreed, contractually, not to take you, as part of the same deal that suppressed your wages in the first place. The exit door was locked before you knew you were in a room.
The workers affected by this alleged scheme were not executives negotiating equity packages. The Illinois Supreme Court’s own opinion describes temporary workers as a group the legislature specifically identified as “particularly vulnerable to abuse of their labor rights, including unpaid wages, failure to pay for all hours worked, minimum wage and overtime violations, and unlawful deductions from pay for meals, transportation, equipment, and other items.” These are people who rely on every dollar. A below-market wage is not an abstract economic harm. It is a missed utility payment. It is choosing between groceries. It is one more month where savings stay at zero.
The companies knew exactly what they were doing. Colony Display asked them to do it. The three agencies agreed. And then Colony helped enforce the arrangement. The court documents describe Colony as actively participating in making sure none of the three agencies broke from the deal. The client company became the enforcer. Workers were caught inside a structure built specifically to keep their pay down, assembled by the very businesses whose entire function was to connect them with work.
For years, the staffing companies hid behind a legal argument that the Illinois Antitrust Act simply didn’t apply to any of this. A sentence in the law says labor performed by employees isn’t a “service” under the act. The companies argued that sentence made their entire scheme legally invisible. They were essentially saying: “Yes, we fixed wages. No, that’s not illegal. The law doesn’t see it.” Litigation dragged through circuit court, the appellate court, and finally the Illinois Supreme Court. During all that time, the underlying conduct remained uncharged, the case undecided, and accountability nowhere in sight.
The people whose wages were suppressed cannot recover those years. The below-market pay they received during the period of the alleged conspiracy is gone. The better job they couldn’t take because no-hire agreements blocked the door is gone. What the Illinois Supreme Court ruling does is remove the legal shield. It doesn’t restore a single missed paycheck. It just makes the next legal step possible.
β Illinois Supreme Court, January 19, 2024
Legal Receipts: What the Documents Actually Say
The Illinois Supreme Court’s January 2024 opinion is the record. These are direct quotes, unparaphrased, that document what the alleged scheme looked like, what the companies argued, and how the court answered them.
“At Colony’s request, the State alleged, the staffing agencies agreed to fix the wages for their employees who worked for Colony at below-market rates, and they agreed not to hire each other’s employees. Colony helped the staffing agencies enforce their agreement.”
- This establishes the three-party structure of the alleged conspiracy: the client company Colony Display didn’t just benefit from the scheme, it initiated it, and then actively enforced it. Colony is named as a participant in the enforcement, not a passive beneficiary.
- The phrase “below-market rates” is not vague. It means workers were paid less than their labor was worth in a competitive market. That gap between market rate and what workers actually received is the financial harm at the core of the case.
- The no-hire agreement is a second layer of harm: even if a worker could find out they were underpaid, the agreement blocked them from seeking better wages at a competing agency that worked the same client account.
“The State claimed the alleged conduct constituted an agreement between competitors to fix the price paid for services and therefore that it had violated section 3(1)(a) of the Illinois Antitrust Act.”
- The Attorney General framed this as price-fixing, a category of antitrust violation the courts treat as automatically illegal (per se illegal) without needing to prove market-wide harm. Price-fixing among competitors is the clearest, most straightforward antitrust violation that exists.
- The “price” being fixed here is not a product on a shelf. It is the price of a human being’s labor. The AG’s framing treats workers’ wages as the commodity being manipulated, which is precisely what makes the alleged scheme so serious.
“The defendants filed a motion to dismiss the complaint *** claiming that the complaint did not state a cause of action because the Illinois Antitrust Act provides that services otherwise subject to the act ‘shall not be deemed to include labor which is performed by natural persons as employees of others.'”
- The companies’ core legal argument was a technicality: since the act’s definition of “service” excludes employee labor, any agreement about employee wages falls outside the act entirely. If accepted, this reading would have made it legally impossible to ever prosecute competing employers for wage-fixing in Illinois.
- This argument was not a good-faith reading of the law. As the court later explains, it required reading one sentence of a statute in complete isolation from every other section, including the act’s own stated purpose.
“The labor exemption should be read together with the provision of Section 4 which states that labor performed as an employee is not a ‘service’ within the meaning of Section 3 of the Act. The effect of this provision is to make the Act inapplicable to agreements by either labor or nonlabor groups insofar as they relate to restraint of competition concerning labor itself. The Act thus protects both management and labor in bargaining collectively over terms and conditions of employment.” β Chicago Bar Association Committee on Antitrust Law, 1967 Commentary
- This is the drafters of the Illinois Antitrust Act, in their own words, explaining what the labor exemption was for: collective bargaining. Not collusion between competing employers. The commentary says the exemption protects both sides in a labor negotiation. It says nothing about protecting employers who agree to suppress wages independently of any union process.
- The court relied heavily on this commentary as primary evidence of legislative intent, precisely because it comes from the people who wrote the law. The staffing companies’ legal argument was directly contradicted by the document their own law was built on.
“[A]n essential prerequisite to the legality of such multiemployer combinations with respect to industry-wide wages or working conditions is the existence or prospect of a joint collective bargaining agreement with the union, which all parties concede to be immune from the antitrust laws. *** Absent such conditions, however, a combination of employers to reduce their employees’ compensation does not share labor’s exemption.” β Cordova v. Bache & Co., 321 F. Supp. 600 (S.D.N.Y. 1970)
- The court cited this federal precedent to draw a clear line: employers working together in collective bargaining with a union are exempt. Employers colluding in secret to reduce pay, outside any union process, are not.
- There is no allegation of any union or collective bargaining process in the Colony Display case. The workers affected were temporary laborers, a group historically among the least unionized in the workforce. The exemption the companies claimed literally required a union to exist. No union existed.
“No source concerning the purpose of antitrust laws suggests that the legislature meant to leave competing employers free to collude with each other to reduce the wages they pay to their employees or to collude to prevent workers from switching to better jobs.”
- This is the court’s conclusion after reviewing the text of the act, the drafters’ commentary, a proponent’s academic proposal, federal precedent, and arguments from both sides. Every single source pointed the same direction.
- The staffing companies’ argument had no foundation in any source the court could locate. The legal loophole they spent years litigating was, according to the Illinois Supreme Court, something no one in the law’s history ever intended to exist.
β Cordova v. Bache & Co., cited by the Illinois Supreme Court
What Workers Were Told vs. What Was Happening
Societal Impact Mapping
Public Health
Wage suppression among temporary workers is not a labor market abstraction. It produces measurable harm to human bodies and minds.
- Chronic financial stress from below-market wages is a documented driver of hypertension, sleep disorders, and increased rates of anxiety and depression. Temporary workers as a class already operate without paid sick leave or employer-sponsored health coverage in most states, meaning every dollar lost to wage suppression is a dollar less available for basic medical needs.
- The Illinois Temporary Labor Act, cited directly by the Supreme Court, acknowledges that temporary workers are “particularly vulnerable to abuse of their labor rights, including unpaid wages, failure to pay for all hours worked, minimum wage and overtime violations.” A wage-fixing scheme imposed on top of this pre-existing vulnerability compounds documented health risk factors.
- No-hire agreements trap workers in jobs where they have no leverage to negotiate for safer conditions or reasonable scheduling. Workers who cannot leave cannot advocate for themselves. Injuries from overwork, insufficient rest, or unsafe site conditions go unreported when job loss is the immediate consequence of speaking up.
- Colony Display’s workforce is majority temporary workers who perform physical installation work at retail and home improvement sites. Physical labor at suppressed wages, without the financial cushion to recover from injury, creates conditions where workers absorb bodily harm rather than reporting it and risking their only income.
Economic Inequality
This case is a textbook example of how wealth is systematically transferred upward from the most economically precarious workers to corporations through coordinated market manipulation.
- Price-fixing among employers in the labor market has the same economic effect as price-fixing in a product market: it allows buyers (employers) to purchase at below-market rates by eliminating the competitive bidding that would otherwise raise the price. The workers are the sellers. Their wages are the price. They lose the difference every pay period.
- Temporary workers are among the most economically vulnerable workers in the labor force by definition. They lack job security, benefits, and in most cases the union representation that would give them collective bargaining rights. The Illinois Antitrust Act’s labor exemption was designed to protect the collective bargaining process. The absence of a union at Colony Display means the workers had none of the legal protections the exemption presupposes.
- The alleged no-hire agreement suppresses labor market mobility, which is the primary mechanism through which individual workers achieve wage increases outside of union contracts. In a functioning labor market, a worker offered a better wage by a competitor gains leverage. No-hire agreements eliminate that leverage by cartel agreement. The workers are left with neither union power nor market power.
- Three separate corporations, each of which competes for staffing contracts, each of which had an independent financial incentive to attract skilled workers by offering better wages, all agreed to forgo that competition. The financial benefit of the suppressed wage did not disappear; it stayed with Colony Display as reduced labor costs, and with the staffing agencies as reduced pressure to increase pay. The workers bore the entire cost.
- The Illinois AG charged this as a per se violation, meaning the harm is presumed without needing to calculate specific damage in a particular market. Courts have treated wage-fixing among competitors the same as price-fixing for goods for decades. The economic harm is structural, ongoing, and cumulative with every suppressed paycheck.
- The companies’ legal argument, if accepted, would have created a permanent gap in Illinois antitrust enforcement specifically for labor markets. Every employer in Illinois that uses temporary staffing agencies would have been free to coordinate suppressed wages with zero antitrust exposure. The ruling closes that gap, but the years during which the alleged scheme ran are lost.
β Cordova v. Bache & Co., quoted by the Illinois Supreme Court
The “Cost of a Life” Metric
The Illinois Antitrust Act allows the state to seek injunctive relief and civil penalties for per se violations. This case has not yet reached the damages phase. But consider the structure of what was allegedly done.
What Now: The Case Is Still Alive and So Is the Pattern
The Illinois Supreme Court’s ruling removed the last procedural shield. The case goes back to Cook County Circuit Court, where the State of Illinois must now prove the underlying facts. Here is who is accountable and where pressure can be applied.
Who Is Named
- Elite Staffing, Inc.: Named defendant. One of the three staffing agencies alleged to have participated in the wage-fixing and no-hire agreement.
- Metro Staff, Inc.: Named defendant. One of the three staffing agencies alleged to have participated.
- Midway Staffing, Inc.: Named defendant. One of the three staffing agencies alleged to have participated.
- Colony Display: Named in the complaint as the entity that requested the arrangement and helped enforce it. Colony installs fixtures and displays for home improvement and retail businesses, with temporary workers forming the majority of its workforce.
- Illinois Attorney General Kwame Raoul: The AG’s office filed and is prosecuting this case on behalf of the State of Illinois and, by extension, the affected workers.
Industry Groups That Fought Against Workers in This Case
- Staffing Services Association of Illinois: Filed a brief as amicus curiae supporting the staffing agencies’ position. Argued that the Day and Temporary Labor Services Act “immunized” staffing agencies from antitrust liability. The court rejected this argument entirely.
- American Staffing Association: Filed jointly with the Staffing Services Association. These are the industry lobbying arms that went to the Illinois Supreme Court to protect the wage-fixing loophole on behalf of their member companies.
Who Filed in Support of Workers
- U.S. Department of Justice: Filed an amicus brief supporting the State of Illinois and opposing the staffing companies’ exemption argument.
- Raise the Floor Alliance: Worker advocacy organization, filed in support of the State’s position.
- National Legal Advocacy Network: Filed in support of the State.
- National Employment Law Project: Filed in support of the State. NELP is one of the most credible labor rights organizations in the country and tracks wage theft and exploitation in the temporary staffing industry nationally.
Regulatory Watchlist
- Illinois Attorney General’s Office (Antitrust Bureau): The office bringing this prosecution. Follow case updates on the AG’s public docket for Cook County Circuit Court filings under Docket No. 128763.
- U.S. Department of Justice Antitrust Division: Filed in support of the State and has pursued no-poach and wage-fixing cases against employers at the federal level. Contact: antitrust.complaints@usdoj.gov
- Federal Trade Commission (FTC): Has authority to challenge unfair methods of competition affecting labor markets. The FTC has increasingly treated no-hire and non-compete agreements as anticompetitive.
- Illinois Department of Labor: Enforces the Day and Temporary Labor Services Act, which the Illinois Supreme Court specifically noted was designed to protect temporary workers from wage abuse. File complaints at labor.illinois.gov.
- OSHA (Occupational Safety and Health Administration): Relevant where wage suppression through no-hire agreements traps workers in physically unsafe conditions they cannot afford to report.
Concrete Actions for Mutual Aid and Resistance
- If you are or were a temporary worker placed by Elite Staffing, Metro Staff, or Midway Staffing at Colony Display, contact the Illinois Attorney General’s office directly. The AG is prosecuting this case and may need to identify affected workers for the liability and damages phase.
- Contact Raise the Floor Alliance (raisethefloor.org), which specifically organizes low-wage workers in Illinois, including temp workers. They can connect workers with legal resources and community support.
- Document everything. If you work in the temporary staffing industry and believe your employer is coordinating wages with competing agencies, write down dates, conversations, and pay rates. This documentation is evidence in antitrust and wage theft cases.
- Push your city council and state legislators to require staffing agencies to disclose client companies and wage rates in public filings. Transparency is the first weapon against collusion. The Day and Temporary Labor Services Act is already on the books in Illinois; demand its full enforcement.
- Support the National Employment Law Project (nelp.org), which researches and litigates wage suppression cases nationwide. Their work directly informed the legal arguments that prevailed in this case.
- Organize with your co-workers. The Illinois Antitrust Act’s labor exemption exists specifically to protect union organizing and collective bargaining. The route these workers were denied, a union representing them at Colony Display, is the structural solution that would have given workers legal protection the whole time.
The source document for this investigation is attached below.
Explore by category
Product Safety Violations
When companies sell dangerous goods, consumers pay the price.
View Cases →Financial Fraud & Corruption
Lies, scams, and executive impunity that distort markets.
View Cases →

