Amazon Requires Non-Compete Agreements.. For Warehouse Workers
Rick Zeman writes: Amazon, perhaps historically only second to Newegg in the IT nerdling's online shopping heart, has not only subjected their warehouse employees to appalling working conditions, but they're also making them sign a non-compete agreement for the privilege. Here's an excerpt from the agreement: "During employment and for 18 months after the Separation Date, Employee will not, directly or indirectly, whether on Employee's own behalf or on behalf of any other entity (for example, as an employee, agent, partner, or consultant), engage in or support the development, manufacture, marketing, or sale of any product or service that competes or is intended to compete with any product or service sold, offered, or otherwise provided by Amazon (or intended to be sold, offered, or otherwise provided by Amazon in the future)."
That's a pretty broad exclusion to be enforceable.
Your hair look like poop, Bob! - Wanker.
Overly broad non-competes are almost universally unenforceable. The lawyers writing this non-sense know this.
Scott
That's bullshit. if ever there were a reason for lawyers, this bullshit serves their purpose in life. Go ahead, enforce this; just go ahead and try.
You can't be ahead of the curve, if you're stuck in a loop.
for every single case where Amazon tries to enforce this against a warehouse worker. This is absolutely f***ing disgusting.
In Germany, a non-compete clause is only enforceable if compensated, since that goes against the the constitutional right to work where you want. The company has to pay at least 50% of your salary during the non-compete period. That means even if you did sign a non-compete, it's not valid unless the old company is compensating you. Effectively, this forces companies to balance the need for a non-compete with the cost. Effectively, this means only high up people have the clauses in it.
Amazon's already putting in the Kiva system, and is starting a "picking challenge" so there is going to be hope for even the workers who just stand and pick items from the Kiva shelves that pull up to their workarea to escape from the appalling work conditions!
Right now - with minimal punitive effects - the system encourages people to over-reach when writing such contracts, in the hopes of intimidating people from using their legal rights.
This effect, rather than a few rare extreme punitive tort cases (i.e. suing because the coffee is too hot), is why we get said contracts and why we have to sign away our rights whenever we decided to go say white water rafting.
excitingthingstodo.blogspot.com
Can anyone identify a product or service that Amazon doesn't sell or provide?
Job prospects are going to be few and far between if you leave Amazon.
Can't have those robots leave and take their AI to the competition.
As long as Amazon is not in a position to force anyone to work for them, what business is it of ours, what they ask of people willing to work for them?
In Soviet Washington the swamp drains you.
The absolute worst part of this is that it effectively covers any job involved in any way with "any product or service sold, offered, or otherwise provided by Amazon" ...which, since Amazon does a little of everything means that it effectively says "you agree not to work anywhere for 18 months after you quit or are fired."
How the fuck are their employees supposed to know what is "intended to be sold, offered, or otherwise provided by Amazon in the future"?
As I understand it, this is saying that warehouse workers (i.e. the people who do physical labor like moving products from point A to point B, or pack shipments) can't help to develop similar systems for their competitors using what they know about Amazon's practices. This does not seem to stop them from doing manual labor elsewhere.
This doesn't seem all that concerning to me. AFAIK this is the exact kind of thing non-competes are intended for. Perhaps 18 months is a little long. I'd guess 6-12 months is more reasonable.
But other than that, this doesn't seem all that bad.
At least in Canada your employer cannot prevent you from earning a living from a competitor after you were let-go/quit.
Canadian Law protects you from these NCAs, even if you signed it.
and love it! (or else).
-Signed, Amazon
This is not enforceable even in the US... right?
RIGHT??
"The agriculture ministry is not in charge of Gundam" - Japanese ministry official.
it seems everyone wants everyone else over a barrel.
The purpose of such agreemenst, non-enforceable that they may be, is to intimidate their employees. Sorry Amazon, but I won't be purchasing stuff or employing your servers (AWS) in the future until you decide to stop being such dickheads! FWIW, I was responsible for deploying over 5000 servers in the AWS cloud a couple of years ago. I'll be looking for another cloud provider in the future!
Has Amazon actually tried to enforce this clause on it's ex-warehouse workers? Somehow I just don't see Amazon spending their money on lawyers to go fight about a minimum wage employee's future employee.
That one word pretty much sums up the trajectory of business and politics today. And neoserf for its plans for us.
There is no way that contract could be enforced because Amazon is an online retailer, and working anywhere else that sells anything could be seen as competing with Amazon. Therefore they are basically saying that as our employee you are not allowed to work if you leave this job unless you completely change careers. That contract would get laughed out of court by any reasonable judge.
time for a union the works should strike and amzon will be in deep to ship anything with no workers other then mangers doing that work.
Contracts frequently include clauses that are not allowed by law. The simple solution, asking someone to sign a contract that is illegal in the stathe means you cannot do business in that state for one year... That WOULD impact Amazon's bottom line.
Out of the three states that say that non-competes are unenforcable, only California will have people sniping warehouse workers from Amazon.
this kind of thing should be illegal, these are entry level jobs compensated as such. If that is enforceable, it rules out almost all other entry level jobs (Amazon sells pretty much everything) and thus effectively makes it so no one can leave Amazon. Appauling.
Good thing Wisconsin just passed a right to work law. I haven't read the law, but it does mean I can work for whomever I want whenever, right?
Given the investments Amazon has made in their warehouse - being unlike other warehouses, I can see why they'd want to protect their investment.
Can anyone here name three products which are legal in the USA and do _not_ "[compete] or is intended to compete with any product or service sold, offered, or otherwise provided by Amazon (or intended to be sold, offered, or otherwise provided by Amazon in the future)"?
I am not a lawyer, but I had a long discussion with my lawyer when I was faced with stuff like this in my contracts. Generally if a condition is deemed overly broad which this certainly is, it becomes unenforceable. In addition there is the principle of adhesion which holds that if one party is much more powerful than the other party to a contract, terms and conditions which place the weaker party at a disadvantage are unenforceable.
Junior lawyers tasked with writing things like employment contracts try to stick in language to cover every contingency. They can get in trouble for leaving something out, but they can't get in trouble for unenforceable junk. So you get screwy contracts. In 20+ years as a contractor I don't think I ever had an employment contract that I could sign as received. Working out mutually acceptable language can be a hassle, but I've never had my change requests refused. But you do have to ask.
That kind of warehouse workers are replaceable in a second and Amazon knows this. If they have to or want to fire one there's a sheaf of a hundred resumes equally qualified to trudge about scanning items and bringing them to the packing area. It's absolute bottom-of-the-barrel stuff. This is the only reason most amazon warehouses aren't replaced by robots now: humans at slave wages cost less.
source: I once worked in an Amazon warehouse.
If video games influenced behavior the Pac Man generation would be eating pills and running away from their problems.
What I found most disturbing about the linked article on working conditions in the Amazon warehouses is that they were trying to get the temps to work harder with vague statements about full time employment. I work as a temp, and every single temp agency in existence has a provision in the contract they have with the employers that the employers will not hire the temp for a period (usually six months) after their last paycheck. I'm smart enough to know that anyone who promises me a full time job is lying, but to try and pull the wool over the eyes of these warehouse workers is unforgivable.
Someone ought to hit Epic for their non-competes as well.
They are not as broad as this, but they also collude with other companies not to hire each other's employees even if the employees in question aren't under a non-compete.
Though I'm not sure if collusion is the right term since Epic forces the terms on its partners.
Why don't companies like this just put iron collar rings around their "workers" necks and call this what it is?
My wife's employer is an apartment management company. Their HR director copied all the company policies and procedures manuals, then bailed to start a competing firm. A few months later, the company demanded that all employees sign non-competes as condition of continued employment.
Because she's worked in the company for nearly 15 years, it's unlikely she would find comparable employment in an unrelated field should she decide to leave. We sought the advice of an attorney who offered some great advice. First he said the company would need to undertake legal measures to enforce the non-compete. Theirs did not provide for any penalty against my wife, so even if they were to win in court, there's no consequences, other than her company is out their legal costs.
Secondly, a non-compete cannot be one-sided, or courts will throw them out. People have a right to work that cannot be forfeited or signed away. Her non-compete was overly broad - both in geography and scope. The language disallowed employees to work in any field the company did business in within the state of Nevada or within 100 miles of any site where they operated. Keep in mind they also demanded the maintenance and landscape workers to sign these non-competes. Our attorney counseled us that those provisions alone would likely nullify the entire document in court. It's not reasonable to tell the guy who mows your lawn that he needs to move across the country if he ever wants to work in yard care again.
I suspect Amazon's warehouse workers would fall under the same protections. Nothing about putting product in a cardboard box is proprietary. This is just some idiot middle manager trying to intimidate employees in an effort to reduce turnover.
Some of Amazon's facilities have some seriously awesome robots, and their operating practices (while occasionally...horrifying) are still really effective. I suspect that this agreement is actually aimed more at startup wannabes playing at corporate espionage. Which seems really silly...but considering that fast shipping is their lifeblood, if someone who worked for them in a capacity that could play with their warehouse toys started "inventing" new techniques for running a warehouse or building better robots, that could hurt.
Yeah they can't sue warehouse workers because what the hell are they going to get out of it. But they'd love to find ways to sue the next Kiva if they can't buy them.
Amazon is the Wal-mart of the Internet.
I won't shop at either.
Unless Amazon gives them something for the non compete then it's invalid since it would be a one sided contract. Not cool!
....or bureaucrats...
Common to most jobs etc., but as a read the attachments to TFA, I do feel that Amazon is really being heavy handed here with PT/Temp employees so shame on them. I buy A LOT of stuff on line, and Amazon, I will think twice before my next purchase from you.
A Final note to the "little guy" whom this may affect: these would be jury trials, and the jury would love to deny these BS antics from Amazon, and reward a counter suit for unfair practices with massive punitive awards. So take heart in that.
sigs are for losers (except to point out that sigs are for losers)
what the "free" in free enterprise is supposed to mean?
"The wisdom of the Patriarchs was that they *knew* they were fools." --Master Foo
I interned at Amazon last summer as a Software Developer Engineer Intern and that exact clause was in my contract as well. It's pretty meaningless.
Those warehouse workers work for employment contractors, not for Amazon. Our employment law is so destroyed that Amazon, indeed, any corporation, can treat you both as an employee of theirs and an employee of someone else. They aren't even pretending anymore - they do what they like.
...or otherwise provided by Amazon (or intended to be sold, offered, or otherwise provided by Amazon in the future)
So Amazon's slave labor has to be clairvoyant as well as being forced to sign an illegal and evil contract?
I've just decided to stop buying from that batshit insane company. Thank you, slashdot, for bringing this to my attention.
Nothing like pulling the ladder up after their worthless fucking selves.
Its a scare tactic to keep the ignorant workers in line. First time I encountered a non-compete (as a factory assembler putting screws in a sheet metal box) I was convinced I was going to be stuck working for these guys forever. So did most of the other people on the floor. I mentioned something to my neighbor, showed him a copy of the Non-Com. He told me what every one else is saying here, it was almost impossible to enforce (in the state I was in at the time) and that there were no penalties and the onus was on the company to do something about it. Of course, I made sure to let all the people on the floor know that information too. After I moved up the ladder to a more technical job there and took a job at a competing company, I got a letter from my old company telling me I was in violation of the Non-Com. My lawyer sent them a letter saying to fuck themselves and that was the end of it.
Some one like amazon ties to go to far and the feds/supreames step in
That's Libertarian America for you!
These are also the people who are upset about Jeremy Clarkson being fired for assaulting a fellow employee, they seem to think money grants the privileged to assault your coworkers and keep your job.
But it gets better than that: when you start digging deeply enough into Libertarian mentality, they are pro-slavery.
And not only are they Pro-Slavery, but they are also of the mindset that slaves are slaves by choice. Yup you heard it, slaves choose to be slaves. Even though the choice is to work as a slave or be tortured and killed, they still have a choice.
So that's the kind of psychopath you're dealing with.
Amazon is to remove a ''non-compete'' clause from its employment contracts for US workers paid by the hour after criticism that it is unreasonable to prevent such employees from finding other work.
A company spokeswoman confirmed to the Guardian that the clause would be cut.
''That clause hasn't been applied to hourly associates, and we're removing it,' 'she said.
The company would not disclose the breakdown of its staff by geography or hourly pay and salary. No UK employment contracts for hourly workers contained such non-compete clauses.
Amazon further required laid-off employees to reaffirm their non-compete contracts in order to receive severance, reported the Verge.
Amazon to remove non-compete clause from contracts for hourly workers
Amazon doesn't actually employ the folks in the fulfillment centers...
So, if sued, they aren't going up against Amazon itself, but a company that contracts to Amazon. A small distinction, to be sure, but important.... They have far fewer resources and are MUCH more vulnerable to employment rights lawyers.
Amazon built a new BIG distribution center just up I94 here in southern Wisconsin from where Uline has their corporate headquarters and many warehouses and distribution centers. And Uline makes you sign non-competes as well for ALL their positions. Their's though are for 12 months not 18. I know - I had to sign one....
The Truth is a Virus!!!
In a "right to work" U.S. State (iirc most are) they can't do it IF it affects you functioning on the work you do for a living.
* I know it holds true for computing professionals & other skilled trades (not sure about warehouse work/labor though, but, the argument COULD be made for it I'd think @ least - even warehousemen have skills, like forklift driving (I grew up with guys who worked as union men that way for example)).
APK
P.S.=> Just some "FYI" if "the man" tries to "lawyer you down" & all the "they are SO BIG they will crush you in court" isn't true when YOU have truth & actual law working FOR you - in case ANYONE here didn't note it already (haven't read thru all the replies here yet)... apk
Never work anywhere else again.
To bad it is not worth the paper it is written on in Arizona where one of their main warehouses is located.
Non-Competes are mostly used to intimidate employees, and limit their ability to negotiate for more money. How does this work? (West coast state, where Non-Completes are allowed) Me: "Hey I found a new job that will pay me more money, will you match their offer?" Them: "No, and if you go to work for them, we'll sue you. Because Non-Compete." Me: "No way, I heard that you can't enforce these things, so I'm leaving anyways" Them: "Well, we just sent your new employer a cease and desist letter, so won't hire you now." (Yup!) But what really sucks is when your employer self-implodes, and you are left with angry clients and no future. Then you will *really* regret signing that non-compete. (Yup) My personal recommendation is to deal with the Non-Compete up front, I recently requested the removal of a non-compete from my new employer, they complained about it for a day, but in the end relented. Although, I must admit that I was in a strong negotiating position to walk away if they didn't agree to my terms. This is why Non-Compete should be outlawed (as in California), they are widely abused in the industry, and many people are powerless to stop them up front.
Here in the EU, if there are terms in an employment contract that effectively mean a non-compete for X length of time after leaving that employment, they are completely unenforceable once the employment contract is terminated. The key terms are "contract" and "terminated". The contract no longer exists legally once the employment is terminated.
If a company wants non-compete methods, then they have to request that the newly-ex-employee sign a new contract to not compete with the previous employer's competitors, and in every case that I have heard of, the monetary terms for that non-compete had to be very very generous in order for the newly available employee to not work for the next 6 to 18 months in the business. Some in this situation went on training courses to stay current, others branched out into differing areas of work, all while getting handsomely paid not to work for the competitor.
Amazon have their head up their ass regarding the treatment of their employees for a long time in the US, and it'll come back to bite them. At least in the EU the employee protection legislation prevent such entities from taking that level of advantage of their employees. I'll be glad if/when karma comes back to burn Bezos and gang over their unethical actions and general mistreatment of their staff.
- This sig deliberately left blank. Nothing to see, move along.
Non-compete agreements used for their non-disclosure properties are used to prevent accidental disclosure.
In theory, people also have the choice to live single instead of starting a family in the first place.
The clause isn't really intended to stop someone from taking an hourly wage doing warehouse work at a competitor if they found themselves out of work after being released from Amazon. It is probably intended in part to discourage workers from being directly poached by competitors, but it's unlikely Amazon would bother trying to enforce it for such things.
Amazon, as much as anything, is a shipping and receiving logistics company. The system and method they use are some of their most valuable assets. The clause is intended to prevent a smart warehouse worker going to a competitor and taking a high level position helping them replicate Amazon's system by using his insider knowledge. This is the main area of concern for Amazon. Sure, a confidentiality and non-disclosure agreement should also cover that aspect, but the non-compete can help strengthen this and make it less likely to happen.
How about Pledge of Allegiance — is that a "cohesive contract"
Members of some religious groups handle this by not saying the Pledge at all. They pledge allegiance only to god, or they say a parody pledge referencing a pyrotechnic accident in 1984:
As long as plantation owners are not a position to /force/ anyone to become slaves
Modern pseudo-slavery differs from slavery in the first half of the nineteenth century in one important way: the child of two wage slaves is not a slave to either of his parents' employers.
Weyland-Yutani's due to rise up and overtake pretty much everything within a few decades anyway.
The article about the appalling working conditions is just a really, really long story about the heat. It hardly covers anything else, and I've seen people who at least say they are/have been Amazon employees report all kinds of other crap. 15 minute break, right? Well it takes 5 to walk to the break room, 5 to walk back, so they had a 5-minute break. Technically kosher, but it isn't good for employee morale. The right thing to do would be to install more designated break areas, so it's say a 1-2 minute walk instead.
I've worked in a warehouse. Family Dollar, to be specific. The heat there got crazy too, but heat incidents were few and far between. We had louvers, humongous exhaust fans to pull air in through the louvers, cattle fans everywhere, comically large ceiling fans over the receiving area, and even the answer to Amazon's big worry about theft via the dock doors: Use a security fence. There were certain dock doors which had a surround around them, with a mesh of chains forming a fence. The two halves would be brought closed and locked together, and then the door provided plenty of breeze. For getting drinks and taking a leak, even though there were productivity requirements, you just figured it up when you reported your downtime, which worked for you.
Second? is there anyone here who DOESN'T use newegg just to configure the initial build, only to switch to amazon (with it's lower prices) to complete the purchase? Just sayin...Newegg was cheaper...in the early 2000s. Amazon actually rules the roost now, even though it's website blows balls (newegg isn't doing so hot these days either, with it's downgrade in UI experience.)
when you're a large mega corp with lawyers on retainer and your ex-employee was making $12/hr (if they're lucky) and living out of their RV. See, once you start eroding workers rights it's all downhill from there.
Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
they know, and they don't want you to for just that reason.
Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
Just because a contracy says "something" doesn't mean it's enforeceable.
IANAL but i can say with 100% confidence that this is not enforceable in the great state of California.
Over 25 years of contracting in CA I've had a few IT brokers try to give me grief about violating some non-compete or non-solicitation clause in a contract I had signed. I told them, "Sorry I'm not a lawyer, but I have one on retainer, let me give you his contact info, ready ?". That was the end of the story.
l
They demand a lot of loyalty from people they'd cut up and sell for organs if they thought it would be profitable. I'm actually mildly surprised Amazon hasn't tried this yet. Like if you get killed in the warehouse Amazon gets dibbs on your organs kinda clause.
I'm trying to teach myself to set people on fire with my mind... Is it hot in here?
In South Africa a non-compete is only enforceable is the contract is fair: if you get reasonable compensation during the period then it is feasibility, e.g. When Knott Craig leeft Vodafone (Vodacom) he was paid ~$1m for the year.
In my case, my US employee paid me nothing to compensate for the non-compete period, so it is not. enforceable.
Open and shut.
Corporations are better than governments, because if you don't like what the corporation does, you can go elsewhere, whereas you can't, um, leave the country? change the government? Uh, well, you can't do the same exact thing with government, so their incompetence is worse than corporate incompetence!
What's that? A non-compete agreement? Ah. Well, I guess you can still get unemployment benefit to pay for food and bills if you refuse to work there any more, right? No? So the choice is "put up with it or die in the streets"?
NO MATTER! Corporate malice or incompetence is not a problem because you can decide not to give them your money!!!
What? Walmart is the only place I can afford to buy food at? And that Nestle bought up forty companies and kept their name so I can't tell what Nestle owns and not give them my money?
NO MATTER! GOVERNMENT BAD, PRIVATE INDUSTRY GOOD!!!!!!!!
Every non-compete has a geographic limitation. Often that is 50 miles around the current place of employment.
Move.
That solves this if you are high enough up for the old company to care.
I've lived in 9 different states and 11 different cities. Change is good, plus you can loose girlfriends and parts of the family you don't want anymore.
I can't take any job involving "any product or service sold, offered, or otherwise provided by Amazon (or intended to be sold, offered, or otherwise provided by Amazon in the future)" then I'm absolutely going to need Amazon to keep me fully informed about all their future plans throughout my employment with Amazon.
This would be purely so I can be sure I won't inadvertently engage in any subsequent activity that would fall foul of that non-compete clause.
Heh heh.
"As a current employee of Amazon and looking for a different work, with reference to Non-Compete document# xxx I have signed, I am requesting a comprehensive list of jobs and domains which I'm forbidden to participate in. Currently my job as a janitor of warehouse X leaves me with very little to no knowledge of what products or services are in development, manufacture, marketing, sale , offered or otherwise provided by Amazonof any product or service that competes or is intended to compete with any product or service sold, offered, or otherwise provided by Amazon, and especially the ones it intends any of the above in the future. Since I must know if I'm allowed to perform any of jobs there are openings for, I require this information, so that I don't violate my Non-Compete."
"Please deliver the printed list to my house at [...], as I'm unable to rent a truck to take it home from work."
45 5F E1 04 22 CA 29 C4 93 3F 95 05 2B 79 2A B2
I have a great job for all these people: they get free healthcare, free dental, housing and will even get promoted the first few times based on time served. Who knew the military was so good? As for the working conditions, though, at least these guys have a roof over their heads.
Word!
But you'll still buy crap off Amazon.
The new evil of the corporate world (second only to Walmart)...
The final sub-clause "(or intended to be sold, offered, or otherwise provided by Amazon in the future)" strictly means that the signatory is prohibited in advance from doing something to be defined in the future by Amazon, and implies that an act defined by Amazon in the future will have the retroactive effect of putting the signatory in breach.
This is probably unenforceable anywhere in the civilised world.