Two new class action lawsuits have been filed against Amazon, alleging violations of Washington state laws related to pay transparency and non-compete agreements. The lawsuits were filed by plaintiffs represented by Seattle-based law firm Emery Reddy in King County Superior Court in Seattle. Amazon responded by stating that they comply with all applicable laws and are reviewing the complaints. One of the lawsuits claims that Amazon required employees to agree to non-compete clauses despite earning below the salary threshold required to enforce such agreements, which was $100,000 in 2020 and rose to $120,599.99 in 2024. The attorney representing the plaintiffs, Timothy Emery, stated that non-compete agreements have continued underground despite becoming illegal in 2020, with employers like Amazon disguising them as ‘nonsolicitation’ clauses.
Non-compete agreements have been a controversial issue in the tech industry, with some arguing they protect trade secrets while others claim they stifle innovation. The Federal Trade Commission issued a rule earlier this year to ban non-compete agreements, but a federal judge in Texas blocked the ban from taking effect. The other complaint in the lawsuits focuses on the Washington Equal Pay and Opportunities Act (EPOA), which went into effect in January 2023. This law requires employers with 15 or more employees to include wage scale or salary ranges in job postings. The complaint alleges that Amazon did not include wage scale or salary ranges in their job postings for positions based in Washington state, leading to a lack of transparency for applicants and hindering their ability to negotiate pay effectively.
One example cited in the complaint is a job posting from Amazon that listed a salary range of $66,800 to $142,800 per year, which the plaintiffs argued did little to inform workers about the pay they could expect. The attorney representing the plaintiffs, Reddy, noted that this wage range did not promote wage transparency and did little to address wage inequity, particularly affecting women in Washington. The lawsuits highlight the ongoing challenges faced by workers in terms of pay transparency and non-compete agreements, especially in the tech industry where these issues are prevalent.
The lawsuits against Amazon shed light on the persistent wage gap in Washington and the challenges faced by workers in negotiating fair pay and understanding their value in the job market. Emery Reddy, the law firm representing the plaintiffs, is pushing for accountability from Amazon in complying with state laws governing pay transparency and non-compete agreements. The outcome of these lawsuits could have implications for how tech companies operate in Washington state and across the country, particularly in terms of promoting fair pay practices and ensuring employees are not unfairly restricted by non-compete agreements.
