Such contracts may contain a provision requiring the employee to work exclusively for the broadcasting company during the term of the contract, but may not prevent the employee from going to a competitor immediately after the term of employment expires. Not available at time of printing. Non-compete clauses are a standard practice in St. Louis. They are not, however, widely used in Kansas City, Chicago, and in many other cities. The bill will reinstate the free market for labor that existed before the industry was deregulated and started to consolidate.
Equity favors allowing the use of non-compete clauses.
The courts have ruled that such clauses must be reasonable, must protect a legitimate business interest, and that there must be consideration given for them. In contracts containing non-compete clauses, all these elements are found. Employers pay for this protection with higher salaries. If the clauses are prohibited, many salaries could decrease as a result. This bill prohibits television and radio broadcasting employers from imposing noncompetition agreements upon employees as a condition of employment.