Non-compete clauses have become big news lately as the Federal Trade Commission looks at banning the practice radio stations often use to keep employees from crossing the street and working for a competitor. The National Association of Broadcasters has sent a letter to Congress opposing the FTC’s proposal
The NAB says the proposed ban on noncompete agreements is far-reaching and oversteps the FTC’s jurisdiction and broadcasters present a unique case for reasonable noncompete clauses due to the substantial investments broadcasters make in promoting on-air talent.
The NAB says the FTC lacks the constitutional or statutory authority to issue such a rule and, in attempting to do so, the agency is improperly usurping the role of Congress.
“Moreover, this sweeping rule would invalidate millions of contracts around the country that courts, scholars, and economists have found entirely reasonable and beneficial for both businesses and employees. Accordingly, we ask you to exercise your oversight and appropriations authority to closely examine the FTC’s proposed rulemaking.”
The NAB Letter also goes on to say that the FTC’s rule would invalidate millions of contracts around the country that courts, scholars, and economists have found entirely reasonable and beneficial for both businesses and employees. “Accordingly, we ask you to exercise your oversight and appropriations authority to closely examine the FTC’s proposed rulemaking.”
Read the full letter HERE.
Radio lowered the standard for employee output. Now they’re stuck with people who read liners and try to be comedians in 6 seconds. Don’t worry, none of these companies enforce these non-competes. Just not worth it.
Oh – but if today’s companies actually gave a hoot about the talent…the perception that radio talent is pretty low on the food chain continues. It was that way when I started many years ago, and apparently the NAB’s “B” stands for “Banks”.
Real talent left a long time ago. Anyone left is just returning emails and talking over intros.
I was today years old when I found out that the National Association of Broadcasters was not on the side of the actual day to day “broadcaster”. All non-competes do is take away the ability for someone to use the skill they have to make a better living. In the sports world it’s called free agency and it happens daily. Talent should go to the top bidder. You don’t want your employee to go work for your competition, then match the pay. If the job offer isn’t out of market, most of us would rather stay where we’re at anyway.
Ummm…. stop taking BS jobs. Also, have some balls when negotiating your contract. If the company doesn’t want to match the pay, then they see less value in yourself than you do. Imagine that.
“Promoting on-air talent,” I can’t tell you the last time I saw a billboard or ad on TV “Promoting on-air talent.” NAB(S).
Who wants to see a billboard of a guy that when they turn it on is going to be playing 10 songs an hour and trying to find a punch line every single break…. when DJs tried to start being comedians, it all fell apart.
How is a non-compete beneficial to the employee?
If you’re a crap employee then it keeps real talent from replacing you.