SALT LAKE CITY, Utah, March 5, 2018 (Gephardt Daily) — A bill designed to curb the alleged abuse of noncompete clauses by local broadcast outlets has cleared Utah’s House of Representatives and will be considered by a Senate committee Monday.
House Bill 241, introduced by Utah State Rep. Mike Schultz, R-Hooper, was originally aimed at all Utah media, including newspapers and magazines, but later amended to apply only to the broadcast industry.
Schultz, and the bill’s supporters — including longtime investigative reporter and consumer advocate Bill Gephardt, owner of Gephardt Daily — oppose the use of noncompete clauses, saying they are intrinsically unfair to many broadcast employees and subject to widespread abuse.
Those favoring noncompetes, however, including top managers of KUTV, KSL, KSTU, and KTVX — as well as selected on-air talent — argued before a House committee 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.
Despite the high-profile opposition, HB 241 passed the House by a vote of 62-12. Monday it moves on to the Senate, where it will face further scrutiny in committee.
To see testimony for and against the bill before it passed the House committee, click on the video player below.
