SALT LAKE CITY, Utah, March 7, 2018 (Gephardt Daily) — A controversial bill designed to curb the alleged abuse of employee noncompete clauses by Utah broadcasting outlets has cleared the state Senate and the House and is on its way to the governor’s office.
House Bill 241 vote was introduced by Utah State Rep. Mike Schultz, R-Hooper, and survived scrutiny before committees in both the House and Senate before winning Tuesday’s floor vote by a margin of 16 to 12.
The bill outlaws noncompetes for staff members earning less than $47,500 per year.
It also allows contract players to accept employment with rival stations as soon as those contracts expire. Most current noncompetes prevent workers from accepting employment for at least a year after separation.
Proponents of the bill — including longtime investigative reporter and consumer advocate Bill Gephardt, owner of Gephardt Daily — say noncompete clauses are intrinsically unfair, abridging the rights of workers, both on-air and behind-the-scenes, from accepting gainful employment at rival outlets, even when they are no longer being paid.
In testimony before committees in both chambers, Gephardt said forcing ex-employees to leave the market to earn a living in their chosen field is “one-sided and perverted” according to Gephardt. “If you’re not going to pay me, let me go to find a job to support myself and my family,” he said.
Those favoring noncompetes, however, including top managers of KUTV, KSL, KSTU, and KTVX, argued before both committees that noncompete clauses safeguard their companies’ long term investments in the development and promotion of branded on-air talent. They said the same is true for other key personnel who have critical knowledge of the stations’ operations and strategic planning.
Bob Evans, 22-year-veteran anchor for KSTU, echoed those sentiments.
“Great time, energy, effort and money are put into developing a station’s image, much of it surrounding the people, such as myself, who become the face of the station,” Evans said. “Protecting a station’s investment in its people, product and credibility are a legitimate concern.
“While there is a strong argument to be made for individuals right to pursue a chosen livelihood with whomever they choose, likewise, there is an equally strong argument for the protection of a product that affects the livelihood of everyone connected to a station.”
Other critics of HB241 sighted First Amendment concerns, saying the targeting of the media outlets raised questions about legislation that restricts long-accepted business practices of the free press. Wording of the bill was amended to reflect those concerns, limiting its scope to “broadcast companies” only.
Whether Gov. Gary Herbert signs the bill remains to be seen. He expressed his opposition when HB241 was originally introduced, and lobbying efforts against the measure by Utah broadcasters has been intense.
To hear initial testimony before the House committee, click on the video player below.
