Posted by Romelia Argudo.
Usually when an employee of a certain company works there for a long time, it is to their advantage as they have most likely gained experience for another upcoming job. Except in this case, Arthur Valdez was out of luck when he acquired a new job as Target’s chief supply chain and logistics officer. Having worked for Amazon.com for 16 years, Valdez has left his logistics position in this company and was sued for a breach of a “noncompete agreement.” These agreements ensure that an employee of a company, if they quit, will not compete against their business.
This can get a little tricky when switching positions at Amazon.com and moving to Target which is one of their biggest competitors. Amazon says they wish to prevent him from using the “confidential strategic knowledge” he possess from working in their company in his new job at Target. Because of this, Amazon has sued Valdez for the breech of noncompete agreement that binds him “to an 18-month timeout in which he cannot compete against his former employer.” It is said that over the span of 16 years, Valdez has gained knowledge on “’exact title and topics’ of a top secret meeting dubbed ‘Holiday Lessons Learned,’ which is ‘one of the most confidential aspects of Amazon’s analysis and planning’ and included ‘confidential analysis of Amazon’s competition against Target.’”
Amazon is not happy that Valdez has not specified his new roles he will be playing in Target which can harm Amazon. Most cases like these would settle before they are taken to court or with a lawyer, but until this point, nothing is being resolved and an agreement has not been reached yet. Apart from this, Amazon states “in the filing that Valdez’s 2015 compensation exceeded $1 million.”
Until something is settled for sure, Valdez will start his new position as a logistics executive.
Romelia is a marketing major at the Stillman School of Business, Seton Hall University.