Upending the longstanding practice of employers including no-rehire clauses in agreements resolving employment disputes, California Governor Gavin Newsom has signed a new law that will prohibit such provisions in employment settlement agreements. Assembly Bill 749 (AB 749) is another #MeToo-inspired bill, following last year’s wave of legislation surrounding prohibited harassment in the workplace. Under AB 749, with limited exception, all no-rehire provisions in employment settlement agreements entered into on or after January 1, 2020 in California will be void as a matter of law.
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