This law prohibits any provision in a settlement agreement entered into on or after January 1, 2020 “prohibiting, preventing, or otherwise restricting” an “aggrieved person from obtaining future employment with the employer against which the aggrieved person has filed a claim, or any parent company, subsidiary, division, affiliate, or contractor of the employer.” The law defines “aggrieved person” as someone who has filed a claim against their employer “in court, before an administrative agency, in an alternative dispute resolution forum, or through the employer’s internal complaint process.” The law provides an exception, permitting such provisions “if the employer has made a good faith determination that the person engaged in sexual harassment or sexual assault.” The law does not prohibit an agreement between the settling parties to end the current employment relationship.
STATUS: Enacted
This law prohibits the use of “no rehire” clauses in settlement agreements related to employment claims, with certain exceptions.