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Employment Agreements – Beware Hidden Clauses

Employment Agreements – Beware Hidden Clauses

As we all know, searching for a job is never really easy. Most of the time it takes a lot of effort and time to land that job that best suits you. Once the job is found and someone gets hired, there is a sense of relief and excitement. In the mindset of all this, new employees may not pay as close attention to the new hire job agreement being signed. It is very important to look at any contract and the terms and conditions tied to it.

A lawsuit has been filed by Amazon.com against a former executive after he was hired as the Chief Supply Chain and Logistics Officer for Target, claiming the former employee is in violation of a non-compete clause he previously signed as an employee. While this situation isn’t likely to happen for most workers, it does highlight the potential dangers of hidden clauses that can be found in some employment contracts.

According to Amazon, the former executive, Arthur Valdez, signed a document agreeing not to work for a competitor for 18 months after the end of his employment at the company due to knowledge of confidential information and trade secrets regarding product shipping. Amazon believes that Valdez’ new position with Target would compromise, or already has compromised, closely-held trade secrets he learned as the President of Operations. Target has made an announcement addressing concerns of trade secrets and believes the lawsuit is without merit.

Non-compete contracts are null and void in California, but Amazon is headquartered in Washington state, where reasonable non-compete agreements considered reasonable are allowed. Valdez is supposed to start his new job with Target today.

See the news article here.

Perona, Langer, Beck, Serbin and Harrison provides assistance to people who have been wrongfully terminated from their jobs, discriminated or harassed, and more, including clauses in employment contracts that could be ruled as unfair. For a free consultation, call us today at (800) 435-7542.

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