As many employers struggle to find skilled job candidates, rehiring a worker who previously left the organization, or a boomerang employee, can be an effective way to fill a position.
According to ADP Research, this practice is on the rise, with boomerang employees accounting for 35% of new hires in March 2025. That’s up from 31% a year ago and 27% two years ago.
While deciding to rehire someone may seem like a straightforward decision, taking time to establish a well-thought-out rehire process can reduce risks, increase administrative efficiency, and decrease costs in the hiring process. The following are key considerations for employers.
The Rehire
It may be easy to make assumptions about a potential boomerang hire’s knowledge, skills, abilities, and cultural alignment since they previously worked for the organization. However, depending on the amount of time that has lapsed, those assumptions may be inaccurate.
When considering a rehire, explore the reason employment ended previously. If the employee resigned due to dissatisfaction in the workplace, an analysis of this information may assist you in determining if the problem has been resolved. If unresolved, this significantly increases turnover risk. Review prior performance records to understand what, if any, performance issues may have existed. Address any concerns in the interview process to determine the likelihood of carrying over the same performance concerns.
Policies and Procedures
Consider what, if any, internal policies and procedures are in place for rehires. This template can help get you started. Here are some other best practices:
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To ensure a fair and non-discriminatory process, start by determining clear and consistent rehire criteria. Consider what circumstances would create rehire eligibility, such as resigning in good standing or being laid off, versus those who were terminated due to misconduct or poor performance. Ensure that the criteria are objective, behavior-based, and job-related. Consider documenting rehire eligibility in your termination process for ease of administration.
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Consider whether previous service will be combined with the current employment period for purposes of administering fringe benefits, such as vacation accruals.
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Review your onboarding process and tailor the approach for rehires to ensure successful reintegration. Consider major changes that may have occurred, such as new systems or policies that have been put in place. The amount of training and onboarding a rehire needs often depends on whether the employee is rehired for the same position or a different one.
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Consider the administrative process. Best practices for rehires include completing a new W-4, direct deposit forms, and a handbook acknowledgment.
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Seek feedback on the rehire process from both boomerang employees and hiring managers, and use that feedback to continually refine your rehire process.
Legal Compliance
Employers must be aware of numerous laws that can come into play when rehiring someone, including the following:
Form I-9
If rehired prior to three years after separation, employers can choose to re-use the original I-9. An employer may always elect to use a new Form I-9 instead of reusing the original one. In this case, the prior period of employment is treated separately for the retention rule, and the old form is not attached to the new form but kept with others for terminated employees. Employees who are rehired three years after originally completing their Form I-9 must complete a new Form I-9.
Family and Medical Leave Act (FMLA)
For employees to be eligible for FMLA, they must:
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Work for a covered employer
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Have worked for the employer for a total of 12 months
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Have worked at least 1,250 hours over the previous 12 months
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Work at a location in the United States where at least 50 employees are employed by the employer within 75 miles
However, be aware that the 12 months of employment need not be consecutive. Therefore, a boomerang employee may be FMLA eligible upon hire or shortly thereafter. Employment periods prior to a break in service of seven years or more need not be counted unless the break is caused by the employee’s fulfillment of their National Guard or Reserve military obligation, as protected under the Uniformed Services Employment and Reemployment Rights Act (USERRA), or a written agreement, including a collective bargaining agreement, exists concerning the employer’s intention to rehire the employee after the break in service.
Colorado Healthy Families and Workplaces Act
In Colorado, if an employee leaves the organization and is rehired within six months, the employer must reinstate all previously earned but unused paid sick leave. The employer need not reinstate previously earned paid sick leave that was paid out to the employee at the time of separation.
Arizona Fair Wages and Healthy Families Act
In Arizona, if an employee leaves the organization and is rehired within nine months, the employer must reinstate all previously earned but unused paid sick leave. The employer need not reinstate previously earned paid sick leave that was paid out to the employee at the time of separation.
New Mexico Healthy Workplaces Act (HWA)
In New Mexico, if an employee leaves the organization and is rehired within 12 months, the employer must reinstate all previously earned but unused paid sick leave. The employer need not reinstate previously earned paid sick leave that was paid out to the employee at the time of separation.
Affordable Care Act (ACA): Rehires and Changes in Status
The ACA’s rules for employees who are rehired are the same as for those who are returning from an unpaid leave of absence. Unpaid absences of 13 weeks or more are treated differently from those lasting less than 13 weeks. Refer to your plan document for more information on how health benefits may be affected by rehire.
Employee Retirement Income Security Act (ERISA)
Consult your retirement plan document for guidance regarding eligibility and vesting in retirement plans for rehires, as they may be eligible to participate or vest based on prior service.
CO Pay Equity Law
Colorado employers must make “reasonable efforts” to post “job opportunities” to all employees on the same calendar day that they are externally posted and prior to making the employment decision. This means that Colorado employers must consider all qualified internal applicants if they wish to consider any external applicants, such as a rehire.
In addition to compliance and cost savings, refining your rehire process ultimately strengthens your employer brand and provides an opportunity to recapture institutional knowledge that otherwise may have been lost. Contact Employers Council if you have any questions about the hiring or rehiring process.
Brandy Walker is a human resources consultant for Employers Council.