On September 11, 2020, Governor Newsom signed Assembly Bill 2143 (“AB 2143”), which adds further nuances to last year’s AB 749 regarding no-rehire clauses in settlement agreements. AB 749 was part of the #MeToo inspired legislation, which prohibited no-rehire clauses in settlement agreements regarding employment disputes. Prior to AB 749, it was common for
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California Prohibits “No Rehire” Provisions In Settlement Agreements
By Frank C. Olah on
Posted in FEHA, Harassment, Hiring and Background Checks
Beginning January 1, 2020, agreements to settle employment disputes may no longer contain “no rehire” provisions, as California passes additional legislation spurred on by the #MeToo movement. California joins Vermont and Oregon as the first states to prohibit “no rehire” provisions in employment settlement agreements.
“No rehire” provisions typically state that a former employee will…