3 ms·
> Amazon should be smart enough to know they can't put in a clause that's too far-reaching and preventing people from working anywhere in the world. Actually,
by jackgavigan 12y ago
> Amazon should be smart enough to know they can't put in a clause that's too far-reaching and preventing people from working anywhere in the world.
Actually, they can put in such a clause. There's a difference between "unenforceable" and "illegal". There's nothing to prevent Amazon from including such a clause in the contract, even if it is clearly unenforceable. The worst case scenario, from Amazon's perspective, is that a court simply rules that the clause is unenforceable (as happened in the example masklinn gave https://news.ycombinator.com/item?id=8600939 https://news.ycombinator.com/item?id=8600939 ).
The best case scenario is that Amazon can frighten an ex-employee with the threat of legal action if he accepts a job with a competitor. Even if the ex-employee knows that a court will likely rule the clause is unenforceable, he has to decide whether he wants to go to the hassle and expense of fighting Amazon in court.
Amazon could also use the clause as a pretext to dissuade potential employers from hiring the ex-employee. Again, while the potential employer might realise that the clause is unenforceable, they have to decide whether they want to take the risk of hiring someone who will then be sued by Amazon (while it may not affect the potential employer directly, the new employee will inevitably be distracted by the court case).
I would never recommend that anyone sign an employment contract with a non-compete clause, even if it's clearly unenforceable. Even setting aside the potential legal hassle if it goes to court, you want to think about why they've included such a clause in the contract. Either they don't realise that it's unenforceable (in which case you have to question how competent they are), or they know it's unenforceable but don't care (which suggests that they plan to use it to frighten/bully you, as described above).
Recently, I turned down a job because the company included a clause in the employment contract under which I would have been prevented from engaging in "any activity" that competed with the company (or its related companies), anywhere in the world, for two years after I left the company. In the relevant legal jurisdiction (Switzerland), non-compete clauses are legal but "must be appropriately restricted with regard to place, time and scope such that it does not unfairly compromise the employee’s future economic activity". This one clearly wasn't. Effectively, it would have prevented me from working in banking or fintech, which is pretty much all that I've done for the last 14 years. I consulted an employment lawyer, who confirmed that it would definitely be thrown out if it ever went to court, so I pushed back.
I have zero problem with clauses that prohibit me from poaching clients or hiring other employees but if a company's hiring me for my expertise and experience that I've gained before going to work for them, I don't think it's reasonable for them to try to prevent me from using that same expertise and experience at another company if I leave them.
In the end, they refused to remove or alter the clause, so I turned down the job.