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WeWork loosens noncompete clause in New York

Entrepreneurs Miguel McKelvey and Adam Neumann set out to create a company deeply rooted in the concept of "we." Together they launched WeWork, an ever-expanding co-working community with thousands of employees across the globe. A major source of contention, however, was when employees wanted to leave that community.

WeWork, like many other companies, used strict noncompete agreements to discourage employees from defecting to competitors. According to New York Attorney General Barbara Underwood, the practice is flawed — and enough was enough.

“Workers should be able to take a new job without living in fear of a lawsuit from their former employer,” said Underwood in a prepared statement. “Yet too often, non-compete agreements are misused, especially when it comes to low-wage workers – limiting employees’ mobility and opportunity and preventing businesses from hiring the best person for the job. Today's settlement is a key step forward for WeWork's thousands of employees in New York and across the country, and should serve as an example for all businesses as we continue our efforts to end the use of these overly broad non-competes.”

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