WeWork and NY AG Settle Over Non-Competes

A Sept 18 settlement with the New York Attorney General voids non-compete agreements for 800 WeWork employees in New York. The agreements barred employees from working for competitors after leaving WeWork irrespective of their salaries, responsibilities and knowledge of confidential information. New York allows non-compete clauses, but they cannot be broader than necessary to protect the employer’s legitimate interests. The AG’s investigation revealed that employees at almost all locations across the country signed such agreements as a condition of employment, and as a result of the settlement, the new policy will apply nationwide. Additionally, about 1,800 WeWork employees will now be bound by less restrictive non-competes. The effective period of their agreement will drop from one year to six months after they cease employment with WeWork, and the geographic restriction will drop from any place where the company operates to a 15-mile radius of WeWork branches that practice the type of work the employee did. The New York AG’s office worked with Illinois’ Attorney General to coordinate the resolution.