No-Rehire Clauses: Employers Take Care!
BRITTANY H. ROTHE-KUSHEL, ESQ.
LOS ANGELES, CALIFORNIA
A no-rehire clause requires former employees to refrain from applying for or seeking employment or reemployment and to waive any such right. However, California employers generally need to avoid using "no-rehire" language in employee separation agreements, voluntary resignations and general releases.
In October 2019 Governor Newsom signed into law Assembly Bill 749, which added section 1002.5 to the California Code of Civil Procedure. This section affects settlement agreements, including those in California workers’ compensation and employer disputes. Under this section, employers are prohibited from including no-rehire provisions in resolving employment disputes with any individual considered to be an "aggrieved person."