General

Companies battling over the logistics of employee contracts

Employee contracts are a critical tool that companies and workers alike depend on to protect themselves and the relationships between them. Should someone violate this contract, a serious legal dispute can arise.

For example, if an employee agrees to a non-compete clause in a contract, he or she will typically be limited in the employment options that can be pursued if they leave their job. This is one way that businesses can protect sensitive information and competitive information and keep it out of the hands of other companies. If a company or person violates this agreement, serious legal repercussions can follow.

For instance, large corporations like Amazon and Target are battling over employees and non-compete clauses more and more these days thanks to the increased value of logistics in their industry.

According to news reports, these two companies are among several others that are fighting to keep talent and competitive strategies in a market where success depends on their abilities to keep up supplying goods to consumers. For instance, Amazon has filed a lawsuit against a former executive who left for a similar role at Target, which, Amazon argues, is a violation of a non-compete agreement.

Employees who have been able to increase and improve a company’s abilities to do this are proving to be quite enormously valuable. Because of this, many are asked to sign non-compete agreements. However, they are also being aggressively solicited by other companies looking to attract them elsewhere.

In this type of environment, there is a very thin line between lawful and unlawful actions. Companies may cross the line into poaching while employees may be attracted to positions that they think they can take but actually cannot. In such a competitive and dynamic industry like logistics, every move counts.

Considering all that is at stake in these situations, for both the companies and the employee, it can be vital that legal counsel be secured in the event that a dispute or questions about legality arise.

Mon Aug 27, 4:07pm