Two new class action lawsuits have been filed against Amazon by plaintiffs represented by the Seattle-based law firm Emery Reddy, alleging violations of Washington state laws regarding pay transparency and non-compete agreements. One lawsuit focuses on Amazon’s alleged requirement for employees to agree to clauses restricting post-Amazon work opportunities, despite earning less than the salary threshold required to enforce such agreements. Non-compete agreements in Washington state initially required an annual salary of $100,000 in 2020 and have since risen to $120,599.99 in 2024. The other lawsuit targets Amazon for failing to include wage scale or salary ranges in job postings, as mandated by the Washington Equal Pay and Opportunities Act (EPOA) that went into effect in January 2023.
Timothy Emery, an attorney with Emery Reddy, stated that non-compete agreements have become more discreet since becoming illegal in 2020, with employers like Amazon cleverly disguising them as ‘nonsolicitation’ clauses. Critics argue that non-compete agreements stifle innovation, while proponents claim they protect trade secrets. The Federal Trade Commission attempted to ban non-compete agreements earlier this year, but a federal judge in Texas blocked the ban from taking effect. The complaint regarding pay transparency alleges that Amazon’s failure to include wage scale or salary ranges in job postings led to valuable time being wasted by plaintiffs in applying for positions without knowing the pay rate, hindering their ability to effectively negotiate pay and compare compensation with other opportunities.
The complaint includes a job posting from Amazon that lists a wide salary range, from $66,800/year to $142,800/year, which the plaintiffs argue does little to inform workers of what pay to expect. The lack of wage transparency is said to perpetuate wage gaps in Washington, particularly affecting women. Emery Reddy emphasized that this wage range does not promote wage transparency and does little to address wage inequity, which relies on transparency. Amazon stated in response to the lawsuits that they comply with all applicable laws in the localities where they operate and are currently reviewing the complaints. It remains to be seen how these lawsuits will progress and whether they will result in any changes to Amazon’s hiring practices.
Non-compete agreements and wage transparency have been hotly debated topics in the tech industry, with ongoing discussions about their impact on employees and innovation. Critics of non-compete agreements argue that they restrict employees’ ability to seek better opportunities and hinder competition, while proponents believe they are necessary to protect sensitive information and prevent employees from working for competitors. The lawsuits against Amazon shine a spotlight on these issues and raise questions about the company’s hiring practices in relation to these laws. As the lawsuits proceed, the outcomes could have broader implications for how tech companies approach non-compete agreements and pay transparency in the future. It will be interesting to see how Amazon responds to these lawsuits and the potential changes that may result from the legal action.
