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California Now Prohibits No-Rehire Provisions in Certain Employee Settlement Agreements

Author: Jessica X.Y. Rothenberg

3/09/2020

Read the full post at HiringToFiring.Law

California Now Prohibits No-Rehire Provisions in Certain Employee Settlement Agreements

Q: My Company’s standard employment settlement agreement includes a no-rehire provision. Can I continue to include that provision for California employees?

A: If the agreement settles an employment dispute with an “aggrieved person,” you may no longer include a no re-hire provision in the agreement for California employees. Assembly Bill No. 749 (AB 749), which amends the California Code of Civil Procedure, became effective January 1, 2020 and provides that if an unlawful no-rehire provision is included in a settlement agreement, the provision is void as a matter of law. An “aggrieved person” is defined as a person who has filed a claim against the employer in court, before an administrative agency, in an alternative dispute forum, or through the employer’s internal complaint process.

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