CA AB2143

Prohibits settlement agreements in employment disputes from restricting an aggrieved person's ability to obtain future employment with the employer or related entities (parent company, subsidiary, division, affiliate, or contractor), effective for agreements entered on or after January 1, 2020.

Requires the aggrieved person to have filed their claim in good faith in court, before an administrative agency, in alternative dispute resolution, or through the employer's internal complaint process for the prohibition to apply.

Creates an exception allowing employers to restrict future employment if they made and documented a good faith determination before the claim was filed that the employee engaged in sexual harassment, sexual assault, or any criminal conduct.

Allows employers and employees to mutually agree to end the current employment relationship and does not prevent employers from refusing to rehire someone for legitimate non-discriminatory or non-retaliatory reasons.

Provides specific legal definitions for "sexual assault" (referencing Penal Code sections 243.3, 261, 262, 264.1, 286, 287, and 289) and "sexual harassment" (as defined in Government Code Section 12940).