Susan Gross Sholinsky, Member of the Firm in the Employment, Labor & Workforce Management practice, in the firm’s New York office, was quoted in SHRM.org, in “Vermont Bans ‘No Rehire’ Clauses,” by Roy Maurer.
Following is an excerpt:
Vermont is the first state to outlaw “no rehire” clauses in agreements which bar workers who settle discrimination and harassment cases from working for that employer again.
The provision is part of a law addressing sexual harassment protections for employees that went into effect last month. …
No rehire agreements typically extend to a company’s parent organization and affiliates as well.
“It’s basically saying, ‘See you later, you can never work for me or any of my affiliates again,’’ said state Rep. Sarah Copeland-Hanzas, the chief author of the bill. “So, if you’re in a specialty field in a small state, that might mean you can never work again.”
Including no rehire clauses in separation agreements is fairly common across the country, said Susan Gross Sholinsky, an attorney in the New York City office of Epstein Becker Green. She said the clause is meant to protect the company from being sued again in the future by a former employee who claims retaliation for not being rehired. Former employees could potentially reapply for a job and allege retaliation for prior legal claims if they are not rehired, and a no rehire provision is not included in the settlement agreement.