WeWork, an international company providing co-work office space, has reached a settlement with the New York State Attorney General over its use of non-compete agreements, which forced employees at its locations nationwide to agree not to take employment in any city where WeWork operates for a period of one year following their departure.
The agreement, reached with WeWork in New York City, frees WeWork employees nationwide from the covenant, which the Attorney General’s Office called “overly broad.”
The settlement leaves in place a less-restrictive non-complete agreement that lasts for only six months and restricts the departed employees from taking jobs within a 15-mile radius of a WeWork facility offering the same type of employment.
The New York state legislature is considering a bill that would ban companies from forcing non-compete agreements on any employee earning less than $75,000 a year.