For Immediate Release: Tuesday, January 11, 2022
ROCKVILLE, Md., January 11, 2022—Today the Montgomery County Council unanimously voted to pass Bill 32-21, Personnel – Employee Settlement Agreements with No-Rehire Clause – Prohibited, which will ban the County from including a no-rehire clause in an employee settlement agreement. Councilmember Tom Hucker is the lead sponsor of Bill 32-21.
“We are a County that believes in second chances, and this bill offers an opportunity to uphold that value,” said Councilmember Hucker. “This bill changes the current process to give valuable County employees a viable option for future employment under most circumstances.”
“The NAACP thanks the Council for passing this bill,” said Cherri Branson, 3rd Vice President, Montgomery County Branch of the NAACP. “Ensuring former County employees have the opportunity for future employment with the County is a small but impactful change that gives these individuals the opportunity to continue contributing to the County in the future. We appreciated the opportunity to work with Councilmember Hucker on this bill.”
Currently, when an employee files an employment dispute or claim against the County and there is a settlement agreement, it may contain a no-rehire clause that prevents the employee from seeking future employment opportunities with the County. This automatic bar places an undue burden on County employees who may have gained several years of knowledge, skills, and abilities with no viable option to return to County employment, even after the dispute has been settled. Bill 32-21 will remove that burden by prohibiting County employee settlement agreements from including a no-rehire clause.
The bill includes a few exceptions in which the no-rehire clause can be included with the authorization of the Chief Administrative Officer or agency head, including if the County and the employee mutually agree to do so, or if the employee was dismissed for cause. The bill will also establish a right for the employee to appeal to the County’s Merit System Protection Board if they disagree with the use of the no-rehire clause.
The Council staff report for Bill 32-21 can be viewed here.