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Unfair hiring practices can be fodder for RICO claims

by on
in Hiring,Human Resources

Commercial Cleaning, a janitorial service, filed suit against a competitor for violating the Racketeering Influenced and Corrupt Organizations Act (RICO).

The company claimed its competitor hired illegal aliens, helping it cut costs and underbid other janitorial firms.

A federal appeals court ruled that Commercial Cleaning can proceed with its RICO claims by alleging a "direct injury" caused by the competitor's illegal hiring practices.

Heads up: This case makes it easier for competitors to go forward with unfair competition cases, and it adds the unusual twist of claiming that "hiring practices" were to blame. (Commercial Cleaning Services v. Colin Service Systems, 2nd Cir., No. 00-7571, 2001)

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