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Amazon Sues Former Employee for Breach of Non-Compete

Posted on Jan 01, 2016

Amazon Web Services, the cloud computing business division of online giant Amazon.com, has filed suit against the former vice president of its worldwide sales and business development unit. The firm is claiming that the defendant, Daniel Powers, breached the non-compete clause contained in his severance package.

According to the filings, Powers, who began working for Amazon in December 2010, received a severance package valued at $325,000 when he left the company in July 2012. In exchange, he agreed not to work for a competitor of Amazon for 18 months. Amazon asked for his resignation in lieu of termination.

The lawsuit filed against Powers states that he began working at Google, a major competitor of Amazon, in September. A post on talkincloud.com states that Powers’ position with Google is in cloud platform sales. If working for Google would constitute a breach of the non-compete, Powers accepted the new position far too early, and the restriction was in place at the time.

Amazon and Google have been battling over market share for cloud services. This lawsuit marks a new aspect in the fight between the two companies. Previously, they have attempted to outdo each other with regard to technology. Now, they appear to be fighting over key executives, as well. Whether a court will enforce the non-compete agreement and find in favor of Amazon remains to be seen.

Issues surrounding New York non-compete agreements are often complex. Contact an experienced New York non-compete lawyer today at (888) 497-3410 for more information about these and other business litigation matters.

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