Amazon is suing its former star executive who is defecting to Target, one of the largest physical retailers in the country. The global online retailer claims that a non-complete clause does not allow the executive to transfer to Target this month.
In February, Target announced that it was taking on board a former Amazon.com logistics executive from the online marketing firm, brushing off the issue that a non-complete clause that he signed prevents him from working for a directly competing company for 18 months.
In its lawsuit filed on Monday, the Seattle, WA-based company claimed that Arthur Valdez, the concerned executive, has told Target that he wasn't supposed to transfer since it will violate the contract he signed with the online seller.
Furthermore, Amazon said that Valdez would be able to carry confidential information about the online seller as he works with its "key" competitor. The company added that its former executive has informed his future bosses at Target information on how the online marketer takes care of logistics and orders during the busy holiday season.
The online retailer filed the suit one week before Valdez is supposed to start working with its key competitor. It claimed that he "cannot lead Target's supply chain operations without referencing confidential information learned and developed by him at Amazon to drive superior performance in exactly the same areas."
The online company claims that its former executive started giving this confidential information to executives of the physical retailer while he is being interviewed for the job.
Amazon is requesting the court to impose the non-complete agreement provision that requires an 18-month "time out" before executives the likes of Valdez can transfer and start working in the same position for rival companies.
Such clauses have been a part of Amazon's standard employment agreements. This type of agreement was signed by Valdez in 1999 at the time the he joined the online retailer, according to the complaint filed by the company.
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