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Showing 3 posts in No Rehire Provisions.

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 ›

The 12 Days of California Labor & Employment Series – Day 1: No Rehire Provision is Now a No-No

It's back! Hard to believe another year is coming to a close and the holidays are fast approaching. As always, the legislature is keeping California employers busy; California has once again enacted many employment laws this year set to go into effect in 2020. In the spirit of the season, it's time for our annual "12 days of the holidays" series, where we will blog daily about one California law and its impact on California employers. So, on the first day of the holidays, my labor and employment attorney gave to me: a partridge in a pear tree and SB 749. More ›

California Law Prohibits No-Rehire Provisions in Settlement Agreements

California law typically frowns on contracts that restrict a person's ability to engage in trade for their chosen profession. In keeping with this philosophy, the California legislature has passed AB 749, which was recently signed into law by Governor Newsom. Employers are encouraged to review their settlement agreements to address the new prohibition of no-rehire provisions before the law goes into effect on January 1, 2020. More ›