“No-rehire” or agreeing to “Not Apply” for future positions legal?

Does your settlement agreement include a none apply or rehire clause? Here’s an example that is common;

“REEMPLOYMENT. Employee represents and agrees that her employment with Employer terminated and will not be re-employed by Employer and that Employee will not apply for or otherwise seek employment with Employer at any time.”

Recently Assembly Bill 749 passed in California. This bill now prohibits employers from including “no-rehire” clauses in settlement agreements. This frequently a contentious issue for plaintiffs wanting to apply for future positions, job vacancies and promotions.  Furthermore, employers in exchange for a settlement frequently request plaintiffs who are still employed to resign if they are still employed and not to seek future employment.   This tactic and/or leverage has been commonplace tool of the defense bar.

There is an exception if the employer made a good faith determination of sexual harassment or assault by the employee entering into the agreement. We will keep tabs on how this bill is implemented in the future!

San Francisco Employment and Personal Injury Lawyer

As an experienced lawyer specializing in personal injury and employment law serving across the Bay Area, Daniel Vega knows what to do to help you get the compensation you deserve. For professional help, call 415-287-6200 or use our online contact form.

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