The main reason to settle a case is to make the whole thing go away.
But when you settle with a former employee, consider the possibility that she may apply for open positions in the future. If you want to avoid a second round of litigation, consider including a “no rehire” clause in the settlement agreement.
Recent case: Suzanne Pemrick sued the State University of New York (SUNY) for retaliation when she applied for an open position and wasn’t hired.
She had sued SUNY once before, charging the school with discrimination back in 1987. That case had been settled, but didn’t include a bar to further applications.
The court said there was no evidence that Pemrick’s application was rejected in retaliation for her previous lawsuit. The case was dismissed. (Pemrick v. Stracher, et al., No. 07-3472, 2nd Cir., 2009)
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