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Professional Service Agreement

No More No Rehire Clauses in California Severance Agreements

October 18, 2019

In most jurisdictions, it is standard practice to include a “no-rehire” clause when negotiating a severance or settlement agreement. “No-rehire” clauses bar the departing employee from seeking future employment with the employer or one of the employer’s related entities. Although the use of “no-rehire” clauses is a common practice, California recently prohibited the practice and joined Vermont, which banned “no-rehire” provisions in 2018.