For Charlotte Bennett, alleged harassment at the hands of former New York Gov. Andrew Cuomo (D-N.Y.) led to years of costly litigation and “extraordinary pain.” Bennett’s state-level case was finally settled in April, with a little-known clause included: If a worker settles a case accusing their employer of sexual harassment, discrimination or any form of abuse, their employer may legally include a “no-rehire” clause in the settlement. This clause bars accusers from seeking future jobs with their employer.
No-rehire clauses can also bar workers from employment with any affiliates, subsidiaries or partners of their ex-employer’s organization. If another company hires an employee, and it is later acquired by or merged with a company that employee has a no-rehire clause with, a federal court affirmed in 2023 that the worker can legally be terminated from that new job, too.
In an age of mergers and monopolies, the consequences of a no-rehire clause may follow a victim of workplace harassment forever. Depending on the size of their former employer, an ex-employee could be barred from hundreds of different companies if their settlement includes a no-rehire clause.
New York state Assemblymember Catalina Cruz (D) introduced AB 293 to fully ban such clauses across the state. If the Assembly bill and its Senate counterpart were passed, New York would join California and Vermont as the only states prohibiting or limiting these clauses.