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California AB 749 bans ‘no-rehire’ clauses after employee lawsuits in 2020

On Behalf of | Oct 28, 2019 | in Uncategorized

Beginning January 1, 2020, California workers who sue their employer and then settle their case no longer may be barred from future work with the employer as part of the settlement, according to a new law signed by Gov. Gavin Newsom, which adds California Code of Civil Procedure section 1002.5 “Agreements Settling Employment Disputes”

“No rehire” clauses have become a common request in settlement agreements in both the public and private sectors, including to resolve cases of harassment and discrimination, said supporters of the new law and in some cases require employees to resign if tehri company does business with the former employer.

Supporters said the new law would help protect victims of discrimination, harassment and retaliation from being treated worse than the people who harass, discriminate and retaliate, who sometimes continue their careers without repercussions.

Opponents to the proposal, including the pro-business California Chamber of Commerce, argued that the law could make it difficult for an employer to prevent the re-hire of an employee fired for a valid reason, or for a fired employee to claim retaliation if they are not rehired.

The Chamber also raised concerns that the law would undermine the certainty of closure that comes with settlement agreements containing no-rehire clauses.

With Newsom’s signature of Assembly Bill 749, California is the third state to ban the no re-hire clauses including Vermont and Oregon.

The attorneys at Quintilone & Associates have over 20 years of experience in handling discrimination, harassment and retaliation cases as well as wage and hour actions against employers and can tell you if you are entitled to meal and rest break pay, unpaid wages, expense reimbursement or overtime pay.  If you are not getting paid for the time you work, contact the attorneys at Quintilone & Associates at 949-458-9675 or  and [email protected]  (habla español o inglés) immediately.

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