January 30, 2024
Having a non-compete clause in an employee’s contract ensures that, at least for some time after leaving the company, the employee won’t be able to use their skills to help competing companies. It’s something that makes sense for high-skill, upper-level jobs but is it really necessary for Amazon to have a non-compete clause for the regular hourly workers? The company has received quite a bit of criticism for this and has finally decided to do something about it by removing the clause.
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. In the past, Amazon has required its US employees, including seasonal workers, to sign non-compete contracts which cover a period of more than 18 months after the employee has separated with the company, the Verge reported on Thursday. According to a contract obtained by the Verge, Amazon workers that signed it pledged not to “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 employee worked on or supported, or about which employee obtained or received confidential information”.
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