SETTLEMENT AGREEMENTS CANNOT PROHIBIT AGGRIEVED EMPLOYEE FROM WORKING FOR EMPLOYER

AB 749 provides that employers, as part of a settlement agreement, cannot prohibit or restrict an “aggrieved employee” (employee who has filed a claim against employer) from working for the employer.  In other words, settlement agreements between employers and employees can no longer contain “no rehire” clauses.  When the employer has made a good faith determination that the employee has engaged in sexual assault or sexual harassment, however, this doesn’t apply.