CHICAGO — Illinois Attorney General Kwame Raoul has secured a $1 million settlement with Midway Staffing Inc., a temporary staffing agency accused of illegal wage-fixing and no-poach agreements that suppressed wages and worker mobility for years.
This latest settlement concludes a broader legal push against unethical labor practices across Illinois, with Raoul’s office recovering a total of $5.5 million for workers harmed by collusion between staffing agencies and their corporate clients.
What the Lawsuit Alleges
The Attorney General’s Office began investigating Midway Staffing in 2020, discovering that the company had engaged in an illegal arrangement with Elite Staffing Inc., Metro Staff Inc., and Colony Display LLC. Together, these firms agreed not to hire or solicit each other’s workers, effectively limiting job opportunities for employees and keeping wages artificially low.
In legal terms, these are known as “no-poach” agreements — contracts or mutual understandings that restrict worker movement and violate federal and state antitrust laws. Combined with wage-fixing, where companies agree to suppress compensation levels, these actions are considered a serious threat to fair labor markets.
“When employers conspire to suppress wages and limit job mobility, they rob workers of opportunity,” Raoul said in a statement.
Who Was Affected?
Temporary workers in Illinois—especially those in low-wage warehouse and packaging jobs—were the most impacted. These workers, often relying on temp work as their primary income source, were deprived of the ability to seek better-paying opportunities or even move to a competitor without fear of retaliation or termination.
A previously settled case involving Midway and Vee Pak LLC resulted in a $200,000 payout to similarly impacted workers. Combined, the state has now distributed millions in restitution to temp workers who were unfairly denied a fair labor market.
Midway Ordered to Comply with New Rules
As part of the settlement, Midway Staffing has agreed to:
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Cease all no-poach agreements
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Avoid any form of wage-fixing practices
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Implement strict compliance measures to prevent future violations
This outcome is also intended to serve as a warning to other staffing agencies that such anticompetitive conduct will be pursued aggressively by the state.
More Legal Action Still Ongoing
While this case has reached resolution, other lawsuits are still active. Four additional staffing companies — Alternative Staffing Inc., Staffing Network LLC, SureStaff LLC, and Vee Pak LLC — are also accused of similar violations. A motion to dismiss these cases was denied in April 2025, allowing them to move forward in court.
Raoul’s office is urging workers who suspect wage suppression or blocked job movement to file complaints via:
Why This Matters for Illinois Workers
This is not just a legal technicality — it’s a serious issue with real economic consequences:
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Workers often earn less than they deserve
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Job mobility is restricted
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The labor market becomes rigged in favor of large employers
For communities across Illinois, especially those reliant on temp labor, these practices contribute to a cycle of poverty and inequality. By suppressing competition, companies also harm honest businesses that pay fair wages.
“This is a fundamental labor rights issue,” said labor policy analyst Jennifer Dey. “When workers are unable to freely choose employers, wages stagnate and economic growth suffers.”
Have you worked for a staffing agency and felt your wages were fixed or your opportunities limited? Share your experience or learn more about your rights at ChicagoSuburbanFamily.com.
