How the #Metoo Movement has translated into new California Law in 2020

Thanks to AB749, employment related settlement agreements entered into on or after January 1, 2020, may no longer include a "no hire" provision that prohibits or otherwise restricts the settling employee who as filed a claim or internal complaint, from procuring future employment with the employer or its parent companies, affiliates, divisions, subsidiaries, or contractors.

Exceptions:

• Does not prevent an employer and employee from mutually agreeing to terminate a current employment relationship;

• Employer will not be required to maintain employment of or rehire an employee if there is a legitimate, non-discriminatory or non-retaliatory reason for termination or employment or refusal to rehire;

• Nohire provisions will be upheld in scenarios wherein there is a good faith determination that the employee was the one engaged in sexual harassment or sexual assault of a coworker

What should you do as the Employer?

Review your current settlement agreements and rehiring standards and revise as needed to bring them into compliance with AB749.

Please note, no hire provisions may still be included as part of a severance or separations agreement as long as the employee is receiving severance in exchange for the release of potential claim AS LONG AS the employee has not already filed a legal claim, internal complaint, or grievance. Proceed with caution.

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