Governor Gavin Newsom Signs AB 749. No Rehire Clauses in Settlement Agreements Are Now Banned in Cal

With Governor Newsom signature on Assembly Bill 749, California now bans "no rehire" clauses in employment settlement agreements. The ban on them goes into effect in January of 2020.

The plain language of AB 749 “prohibits an agreement to settle an employment dispute from containing a provision that prohibits, prevents, or otherwise restricts a settling party that is an aggrieved person, as defined, from working for the employer against which the aggrieved person has filed a claim or any parent company, subsidiary, division, affiliate, or contractor of the employer.”