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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)."

30 of 331 comments (clear)

  1. Good Luck by OverlordQ · · Score: 5, Informative

    That's a pretty broad exclusion to be enforceable.

    --
    Your hair look like poop, Bob! - Wanker.
    1. Re:Good Luck by ralphsiegler · · Score: 4, Insightful

      Just one lawyer needs to see the "class action" possibilities; those won't cost the workers

    2. Re:Good Luck by mr_mischief · · Score: 4, Interesting

      See the part that says "any product or service". That's entirely too broad. Have you seen the breadth of things Amazon sells? This could probably only be enforced if someone was taking proprietary information about how Amazon does things and improves the processes at a competitor.

    3. Re:Good Luck by Lunix+Nutcase · · Score: 4, Insightful

      But to contest the non-compete you'll have to go to court and fight against Amazon's billions of dollars in financial resources. Even if you win, it'll be long and costly.

    4. Re:Good Luck by DaHat · · Score: 4, Insightful

      Contesting it in court assumes it becomes an issue.

      Far easier to simply ignore it, not reveal it to a future employer and assume Amazon never finds out that a someone in the bowels of their company ended up in the bowels of another company.

    5. Re:Good Luck by bondsbw · · Score: 5, Funny

      Non-compete agreements should work both ways. If I can't work for a competitor, then you can't replace me with another employee.

      --
      All my liberal friends think I'm a conservative, all my conservative friends think I'm a liberal.
    6. Re:Good Luck by orasio · · Score: 4, Insightful

      In any case, you would need Amazon to actually enforce it.
      While they do have more money for legal fees, they would risk a big PR issue if they tried to prevent some guy from working at Walmart after quitting Amazon. Also, the first guy with such a problem wouldn't have a lot of trouble finding someone to help them with legal fees, if only for the publicity.

      This is probably just a scare tactic, to discourage people from leaving them, it is unethical, but not really enforceable.

    7. Re:Good Luck by Lunix+Nutcase · · Score: 4, Insightful

      This is probably just a scare tactic, to discourage people from leaving them, it is unethical, but not really enforceable.

      It undoubtably is. Most non-competes are only used for this purpose. The problem is that the worker will never know when their company will choose to enforce it.

    8. Re:Good Luck by Applehu+Akbar · · Score: 5, Funny

      But every Amazon warehouse employee will get am Amazon gift certificate for $25.

    9. Re:Good Luck by TWX · · Score: 4, Informative

      Yep. Last time I checked non-competes were not really allowed in my state either, and my guess is that an attempt at enforcing one against a lowly hourly laborer would be laughed out of court.

      --
      Do not look into laser with remaining eye.
    10. Re:Good Luck by Lunix+Nutcase · · Score: 4, Informative

      Signed contracts are deemed unenforceable all the time. It's called an illegal agreement and there is hundreds of years of common law precedent around it. You're an idiot.

    11. Re:Good Luck by Registered+Coward+v2 · · Score: 5, Informative

      Signed contracts are deemed unenforceable all the time. It's called an illegal agreement and there is hundreds of years of common law precedent around it. You're an idiot.

      Exactly. When I left a job I had my lawyer review the non-compete. His response: "Ignore it. It's unenforceable and the chances of them trying to stop you in court are nil." He said that the law is constantly changing and what is enforceable today may not be tomorrow, and unless you are senior enough or worked on a very sensitive area it's not worth the trouble to sue you; and if you were in those situations you should have a very specific non-compete, with compensation for the time you can't compete to ensure it is enforceable. The general rule is if they try to prevent you from working in an area where you have experience it will be unenforceable unless they pay you to not compete and even then it has to be for a reasonable period. Of course, IANAL and YMMV depending on jurisdiction. HAND

      --
      I'm a consultant - I convert gibberish into cash-flow.
    12. Re:Good Luck by Firethorn · · Score: 4, Informative

      Remember this isn't a criminal offense. Most warehouse workers are 'judgement proof', in that they don't have the assets to pay anything. The court isn't going to say 'you have to quit your job' because it has financial interest in NOT paying for their welfware because they can't work at what they're skilled at due to the non-compete.

      Amazon would pay more than they could recover pretty much every day the court trial went on. Also, there might actually be enough push-back if they tried to change laws.

      Personally, I'd like to see a law of 'sure, write up whatever non-competes you want. However, it means that the the employee is still your employee during the non-compete period. Which means you still have to pay them their salary and benefits'. Don't want them working for the competitor for 12 months? You gotta pay them to sit on their ass for 12 months.

      Finally, it sounds like they stuck the non-compete into their boilerplate employment documents. It's not intentionally targeting warehouse people, though I suppose that with the increasing amounts of robotics in them, it might be deliberate, so said workers don't go describing how the robots work.

      --
      I don't read AC A human right
    13. Re:Good Luck by Holi · · Score: 4, Insightful

      You really think Amazon wants to take the PR hit by suing a contractor who worked in their warehouse for 10 dollars an hour?

      --
      Sorry, teleporters just kill you and then make a copy. A perfect, soul-less copy.
    14. Re:Good Luck by sumdumass · · Score: 4, Informative

      While I'm sure this is something to be considered, I'm not sure it is entirely possible. Some states will have restrictions on what can actually be covered by a non compete agreement. In Washington state for instance, a non compete is limited to customer information and contacts and something called good will (however that is defined) and limited to what is reasonably necessary.

      This is kind of confusing as each state seems to be different to some respect. Some states also have a red line policy where if something is overly broad or not within the law, the entire agreement is tossed out while others will use a blue line approach and only strike out what is in conflict to make the NCA enforceable. Yet there is another process called reformation in which the courts would actually rework the Non-compete in order to make it enforceable
      (eg, striking out the entire state as overly broad and inserting a metropolitan area or radius of distance from the locations of the employer they determine to be reasonably enforceable)

      Here is a little more about how it varies in different states

      And of course, here is the PDF which charts it

      http://www.beckreedriden.com/w...

      I suspect they have no intention of ever enforcing this non compete. I think it is to scare the workers into not leaving for greener pastures, or better pay/benefits/work conditions.

    15. Re:Good Luck by bbn · · Score: 5, Interesting

      Here we have a very effective law that put a complete stop to the non-compete bullshit: any company that wants a non-compete contract will have to pay half salary for the entire period where said non-compete contract is valid.

      So if you stop working somewhere, they have to keep paying you half salary, if they really think that non-compete contract is necessary. They almost never do.

    16. Re:Good Luck by As_I_Please · · Score: 4, Interesting

      A quick search says either Germany or Belgium: http://en.wikipedia.org/wiki/N...

  2. nice try but waste of legal fees by schematix · · Score: 4, Interesting

    Overly broad non-competes are almost universally unenforceable. The lawyers writing this non-sense know this.

    --
    Scott
    1. Re:nice try but waste of legal fees by gstoddart · · Score: 4, Insightful

      Yes, but they also know you have not got the resources to hire more lawyers than they have.

      Basically this is shitting on your workers to keep them in fear of losing their jobs.

      I always scratch those sections out in contracts. Unless you pay me 100% of my salary for the period of time I'm not allowed to compete, I'm not signing it.

      Crap like this should be illegal. And in many sane places, it actually is.

      --
      Lost at C:>. Found at C.
  3. Adopt the German Rules by purpledinoz · · Score: 5, Informative

    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.

    1. Re:Adopt the German Rules by Yebyen · · Score: 4, Interesting

      F$*# that, use California rules. In California, a company that insists on having an invalid non-compete agreement signed by their workers under threat of firing may be liable for wrongful termination in violation of public policy.

      Which non-competes are unenforceable/therefore illegal? Basically all of them.

      The only time a non-compete agreement is valid (regardless of consideration) is when the person signing away their rights does it as part of a sale of a business and the goodwill of that business. So, you can't create the next WhateverApp, sell it for $X-leventy billion, write a deal that says you will not compete with the business you just sold, and declare that non-compete invalid under California law.

      But basically every other non-compete is automatically invalid (even when it is for compensation). If you are paid under the terms of a non-compete for your cooperation, and you break the terms of the deal, you will still be entitled to keep what you have received (that deal was not legally binding) and the company's only recourse is to stop sending the payments. They cannot sue you for violation of contract terms.

      Requisite: IANAL but I play one on slashdot.

      --
      Restating the obvious since nineteen aught five.
  4. What we need... by gurps_npc · · Score: 4, Interesting
    Is punishment for writing bad contracts.

    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
  5. Re:I suggest a million dollar fine by blang · · Score: 4, Insightful

    Yes, it is actually slavery.

    Someone who has signed such a contract would be forced to stay and work in same shitty job with same shitty pay forever if he wants to put food on the table. He has in fact been removed from the competitive part of the workforce unless he is retrained to do something completely different such as teacher or nurse,

    --
    -- Another senseless waste of fine bytes.
  6. Re:Bottom line... by YrWrstNtmr · · Score: 4, Insightful

    Um...lawyers wrote this.

    In the red corner, we have lawyers! In the blue corner, we have lawyers!
    Come out fighting. Whoever wins, its a lawyer!

  7. Re:Maybe not overly broad. by Lunix+Nutcase · · Score: 4

    You're confusing non-dislosure agreements with non-competes. A non-disclosure agreement covers not using proprietary knowledge of one company for the benefit of a future employer. A non-compete is basically trying to ban you from getting gainful employment in the very field in which you have work experience.

  8. Re:That's a really good riddle by greg1104 · · Score: 5, Funny

    Can anyone identify a product or service that Amazon doesn't sell or provide?

    Union representation.

  9. Re:People CHOOSE to work for Amazon by Lunix+Nutcase · · Score: 4, Insightful

    Then don't sign it!

    Right, it's not like people need money to buy food, shelter, etc. Fucking bastards should just be homeless.

    You don't have a right to a job, a job is a privilege.

    Maybe in your psychotic world view. Many people in the world don't share your viewpoint.

    Look, if they offered you a job at a some ridiculous minimum salary like $20K a year, you would say no.

    Not if the other choice is to become destitute and homelesss.

    The fact that you are hungry for work is not Amazon's or any other employers problem.

    It also doesn't give Amazon or any employer the right to try to get you to sign away basic rights that many US states have mandated are rights.

  10. Worker Cruelty by timrod · · Score: 4, Interesting

    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.

  11. It's not enforceable by daveywest · · Score: 4, Interesting

    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.

  12. Come See The Mighty Amazon In Full Retreat! by westlake · · Score: 4, Informative
    Well, that didn't take long:

    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