AB 749 - 2020 California Laws

AB 749 – 2020 California Laws. Photo by Helloquence on Unsplash.

On Jan. 1, 2020, AB 749 went into effect here in California, setting new guidelines for “no rehire” provisions often found in settlement agreements.

Traditionally, many workers who settled claims against their employers were required to agree they would never again work for that company, or its affiliates.

Written by Assemblymembers Lorena Gonzalez, Mark Stone and Eloise Reyes, the law states that employers may no longer reject an application if the applicant had a prior settlement with the company.

A few important notes: If the employee was involved in a sexual assault or harassment incident, business owners can take advantage of the no-rehire provision. Additionally, businesses have the power to terminate employees with a no-rehire provision “if there is a legitimate non-discriminatory or non-retaliatory reason for terminating the employment relationship or refusing to rehire the person.”

Read more about AB 749 at https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB749

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