Law Prohibits Employers from Preventing Employees to Obtain Future Employment in Settlements
On October 12, 2019, Governor Gavin Newsom signed into law Assembly Bill 749 which created Code of Civil Procedure § 1002.5, effective January 1, 2020. The new statute prohibits a provision in a settlement agreement that prevents employees from obtaining future employment with the settling employer. Section 1002.5 applies to prohibit such “no-rehire” provisions in settlement agreements in civil actions. As a result, any provision in a settlement agreement entered on or