ARIZONA STATE SENATE
Phoenix, Arizona
broadcast
employees; noncompete clauses
Prohibits broadcast employers from requiring current or prospective employees to agree to a noncompete clause as a condition of employment.
Noncompete clauses in employment contracts have been associated with a number of industries including the broadcast industry. A broadcast employee who agrees to a noncompete clause is generally agreeing to restrictions in that employee’s ability to work in a particular geographic area, usually encompassing the area where the broadcast signal is received and where advertisements are purchased by the employer, for a particular period of time. In many cases, employees must wait one year after a layoff, firing or at the end of their contract before seeking employment at a competing radio or television station.
Several states
have enacted laws prohibiting such clauses in the contracts of broadcast
employees, including Illinois, Maine, Massachusetts, North Dakota and
Oklahoma. New York has expanded on the
law allowing broadcasters to match offers from competitors under certain
circumstances and California law prohibits noncompete clauses in all
industries.
S.B. 1042 prohibits broadcast employers from requiring prospective or current employees to agree to a noncompete clause as a condition of employment. A violation of this prohibition is established as a class 1 misdemeanor, which is punishable by up to six months in jail and $2,500 in fines plus 77 percent in surcharges.
There is no anticipated fiscal impact to the state general fund associated with this measure.
1. Prohibits broadcast employers from requiring current or prospective employees, as a condition of employment, to agree to a noncompete clause.
2. Stipulates a violation of this prohibition constitutes a class 1 misdemeanor.
3. Defines “broadcast employer” as an employer that is a television station, television network, radio station or radio network.
4. Defines “noncompete clause” as a clause in an employment contract with a broadcast employer that prohibits an employee from working in a specific geographic area for a specific period of time after leaving employment with a broadcast employer.
5. Provides for a general effective date.
Prepared by Senate Staff
January 21, 2002