Amazon Class Action Lawsuits Allege Non-Compete, Pay Transparency Violations

Case Overview: Two class action lawsuits have been filed against Amazon: one alleging violations of non-compete agreements and the other alleging violations of pay transparency laws in Washington state.

Who's Impacted: Amazon employees in Washington state.

Court: Superior Court of the State of Washington in and for the County of King

Amazon is once again under legal fire, this time over accusations that it restricts workers’ post-employment opportunities and fails to provide transparent wage information as required by Washington state law. 

Two new class action lawsuits claim that the tech giant's practices harm low-wage workers by violating laws related to non-compete agreements and pay transparency, Geekwire reports. The lawsuits aim to hold Amazon accountable for allegedly exploiting its workforce while boosting its profits.

Amazon Accused of Violating Washington State Labor Laws

The first lawsuit, brought by Joshua Burns and Trishelle Garner, alleges that Amazon required its workers to sign agreements that unlawfully limited their ability to seek work after leaving the company. 

Washington state law sets a salary threshold for enforcing non-compete clauses, which applies only to employees earning more than a certain amount—starting at $100,000 in 2020 and rising to over $120,000 in 2024. The plaintiffs claim Amazon imposed these restrictions on workers earning less than the legal threshold. 

According to the lawsuit, Amazon has a longstanding practice of “illegally restricting, restraining, and prohibiting low-wage workers from engaging in lawful professions, trades, and businesses and from accepting or transacting business with customers in direct violation of Washington’s noncompetition law.”

The lawsuit suggests Amazon sidestepped the law by disguising these non-compete clauses as “nonsolicitation” agreements, effectively continuing to limit workers’ employment options illegally. “Noncompete agreements may be banned, but for low-wage workers, it feels like little has changed,” said Timothy Emery, one of the attorneys representing the plaintiffs.

In the second lawsuit, plaintiff Christine Rios accuses Amazon of violating Washington’s Equal Pay and Opportunities Act, which requires companies to disclose salary ranges in job postings. 

Rios claims that Amazon’s postings either failed to include wage scales or offered ranges so wide that they were meaningless, leaving applicants at a disadvantage during negotiations. This lack of transparency allegedly perpetuates the wage gap, particularly for women and minority workers.

FTC Proposes Nationwide Ban on Non-Compete Clauses

Non-compete agreements have long been a contentious issue in the tech industry. Supporters argue these contracts protect company trade secrets, while critics say they stifle innovation and unfairly limit worker mobility. 

Earlier this year, the Federal Trade Commission (FTC) proposed a nationwide ban on non-compete clauses, claiming they suppress wages and prevent workers from seeking better opportunities. The FTC estimates the ban could boost earnings for workers by an average of $524 annually and lead to the creation of thousands of new businesses each year.

However, the rule has faced significant pushback, including a recent ruling by a Texas judge who blocked the ban, arguing that the FTC overstepped its authority. Despite this legal hurdle, the pressure to restrict or eliminate non-compete agreements continues to build as more workers and advocacy groups challenge their fairness.

Pay Transparency Laws Aim to Close the Wage Gap

The lawsuit on wage transparency taps into a growing movement to address pay inequality through clearer salary disclosures. Washington is one of several states that have implemented laws requiring companies to provide pay ranges in job advertisements, Vox reports. Advocates argue that pay transparency is key to closing the wage gap, especially for women and people of color.

A lack of transparency often results in unequal pay, as women, on average, earn less than men for the same roles. Recent studies show that women in Washington earn just 78 cents for every dollar paid to men, a gap that has widened in the past decade. By requiring salary ranges in job postings, these laws aim to give workers more power to negotiate and compare pay fairly.

“Transparency is a crucial tool in the fight for pay equity,” said Andrea Johnson, director of state policy at the National Women’s Law Center. While wage transparency laws are a step in the right direction, Johnson notes that deeper structural changes are still needed to fully address the wage gap.

Amazon Faces Mounting Legal Challenges Over Worker Treatment

These lawsuits are the latest in a string of legal challenges Amazon has faced over its treatment of workers. In June, the company was fined nearly $6 million by California regulators for imposing excessive productivity quotas on warehouse employees. 

Meanwhile, the company is facing accusations from employees in Santa Clara County Superior Court that it violated state labor and business codes by failing to pay earned vacation and paid time off after employees left the company.

The company also recently settled a lawsuit in Illinois over its collection and sharing of workers' biometric data without proper consent.

Amazon's response to the latest legal actions saying, “We comply with all applicable laws in the localities where we operate. We’ve just received these complaints and are reviewing them.”

Case Details

• Lawsuit: Burns v. Amazon.com Services LLC, et al., and Rios v. Amazon.com Services LLC, et al.
• Case Number: 24-2-22574-9 SEA and 24-2-22659-1 SEA
• Court: Superior Court of the State of Washington in and for the County of King

Plaintiffs' Attorneys

• Timothy W. Emery, Patrick B. Reddy, Paul Cipriani, and Hannah M. Hamley (Emery Reddy, PLLC)

Have you worked for Amazon or another company with a non-compete agreement? Have you experienced issues with pay transparency in job postings? Share your experiences and thoughts in the comments below.