broadcast employees;
noncompete clauses
DPA |
Committee on Commerce and Economic Development |
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DPA |
Caucus and COW |
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DPA |
Third Read |
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X |
As Passed the House |
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SB 1042 prohibits a broadcast employer from including a noncompete clause in an employment contract.
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.