As of April 2018, WeWork’s workforce is nearly 3,300 in the United States. Almost all of its employees excluding approximately 100 executives will benefit from the settlement.
Companies often misuse non-compete agreements
In a statement, New York Attorney General Barbara Underwood said, “Workers should be able to take a new job without living in fear of a lawsuit from their former employer.”
In addition, Underwood noted that companies often misuse non-compete agreements especially with low-wage workers. Such contracts limit an employees opportunity and prevents businesses from hiring the best person for a job.
Furthermore, she said her office will continue to stop businesses from using broad non-compete agreements. The settlement with WeWork should serve as an example.
On the other hand, Illinois Attorney General Liza Madigan, commented, “Today’s settlement puts an end to WeWork’s unnecessary use of non-compete agreements and removes career obstacles for current and former employees, allowing them to make better decisions for their lives.”
