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Hinshaw's 12 Days of California Labor & Employment Series – Day 4: No-Rehire Provision Now Includes One More Exception

In the spirit of the season—and keeping some semblance of normal—we are using our annual "12 days of the holidays" blog series to address new California laws and their impact on California employers. On this fourth day of the holidays, my labor and employment attorney gave to me: four calling birds and AB 2143.

No-rehire provisions were banned in employment settlement agreements as of January 1, 2020, per SB 749. There was one exception, though: if the employer made a good faith determination that the employee engaged in sexual harassment or sexual assault. If that was documented, a no-rehire provision was allowed. While this exception was helpful, SB 749 caused employer frustration throughout 2020 because it lacks other exceptions. For instance, an employer may settle employment claims, complaints or actions against them, but they are unable to include a no-rehire provision with the employee who initiated the claim. It also did not protect employers from a bad faith claim. Enter AB 2143. More ›