broadcast employees;
noncompete clauses
DPA |
Committee on Commerce and Economic Development |
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DPA |
Caucus and COW |
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X |
Third Read |
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As Passed the House |
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SB 1042 prohibits a broadcast employer from including a noncompete clause in an employment contract.
Current Status
SB 1042 passed the Commerce and Economic Development Committee amended as follows:
§ Strikes the violation provision.
§ Allows a broadcast employer to include a six-month noncompete clause in an employment contract for on-air employees only and to enforce its provisions when there is a breach of contract. If the noncompete clause fails to comply with the provisions of the bill, it is void and unenforceable.
§ Outlines the circumstances under which a noncompete may not be enforced.
§ Makes the provisions applicable to contracts entered into after the effective date of the Act.
§ Adds satellite and cable providers to the list of covered broadcast employers.
The Committee of the Whole adopted an amendment that strikes the penalty provision.
The broadcast industry is one of several industries nationwide that utilize the noncompete clause in their employment contracts. By design the noncompete restricts the particular employee from working in a specific geographic area (usually within the local broadcast area) and varies in the amount of time that must elapse before the employee seeks work at a different television or radio station. Some employees must wait a year or longer after their employment terminates.
The purpose of the noncompete clause is to ensure the employer's investment in education, advertisements, training and general knowledge attained while in the employ of the particular broadcast employer. There is no boilerplate language used industry-wide in the contract. Additionally, some employers require all personnel to sign the agreement, while others bind only the on-air personalities.
SB 1042 prohibits a broadcast employer from including a noncompete clause as a condition for employment.
SB 1042 was amended in the CED Committee as follows:
§ Strikes the violation provision.
§ Allows a broadcast employer to include a six-month noncompete clause in an employment contract for on-air employees only and to enforce its provisions when there is a breach of contract. If the noncompete clause fails to comply with the provisions of the bill, it is void and unenforceable.
§ Outlines the circumstances under which a noncompete may not be enforced as follows:
- Termination [except for breach of contract]
- Non-renewal of the employment contract
- Renewal of the contract, but demotion from on-air to off-air
§ Applies the provisions to contracts entered into after the effective date of the Act.
§ Adds satellite and cable providers to the list of covered broadcast employers.
The Committee of the Whole adopted an amendment as follows:
§ Strikes the penalty provision.