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Don’t Forget “No Rehire” Provisions

By Fox Rothschild LLP on May 5, 2014

Our May 1st post warning against retaliating against employees even after they have left employment elicited this important reader tip:

Michal Longfelder, an employment attorney in the San Francisco area, properly cautioned:

“A related cautionary note is to be sure to include a “No rehire” provision the any release with a former employee.

I recall a situation wherein a former employee initiated litigation based on a position elimination, alleging discrimination. The company settled with the former employee, but did not include such a provision.

Two years later, the employee was re-hired and following a 12-month leave of absence with no definite return to work date, was terminated.  Because of an oversight, the employee was not paid accrued PTO.  The (now second time) former employee cleverly waited 45 calendar days before bringing a claim with the labor commissioner, enabling the former employee to receive waiting penalties that was almost 10 times the unpaid PTO.

Subsequently, the former employee brought a retaliation claim alleging that the employer was retaliating by not considering the employee for a new position. Amazing but true!”

Ed.  It may be malpractice for an attorney to fail to include such a provision in a release.

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  • Posted in:
    Employment & Labor
  • Organization:
    Fox Rothschild LLP

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