Enacts the broadcast employees' freedom to work act; repealer

BILL NUMBER:A9004

Title of bill

An act to amend the labor law, in relation to enacting the broadcast employees' freedom to work act; and to repeal certain provisions of such law relating thereto

Purpose Or General Idea Of Bill: To clarify the protections of persons employed in the broadcast industry.

Summary Of Specific Provisions: Section 1 provides that this act shall be known and may be cited as the "broadcast employees' freedom to work act".

Section 2 repeals section 202-k of the Labor Law and adds a new section 202-k. This new section clarifies the definitions of "broadcasting industry employer" and "broadcast employee" while adding the clarifying definitions of the following terms and phrases: "covered broadcasting services", "management employee", "require as a condition of employ- ment", and "covenant not to compete". Under this section, an entity considered to provide covered broadcasting services must have at least 30 percent of its assets or employees dedicated primarily to such services. This section also clarifies that covenants not to compete applicable during the course of employment are not prohibited. Section one also provides exclusions to prohibited covenants not to compete including (a) enforcement during the remaining term of employment as set forth in the employment agreement, in the event of employment termi- nation; (b) enforcement of a covenant agreed to by a broadcast employee in return for additional and independent consideration; (c) enforcement of an exclusive good-faith negotiation provision; (d) enforcement of a right of first refusal; (e) enforcement of any post contractual restriction for a broadcast employee earning more than one hundred thou- sand dollars annually; or (f) the enforcement by a broadcasting industry employer of any post-contractual confidentiality or non-disclosure provision. Finally, the section prohibits the waiver of any protection provided by the new section 202-k.

Effects Of Present Law Which This Bill Would Alter: Section 202-k of the Labor Law prohibits as a condition of employment, whether in an employment contract or otherwise, that a broadcast employee or prospec- tive broadcast employee refrain from obtaining employment (a) in any specified geographic area; (b) for a specific period of time; or (c) with a particular employer or in any particular industry after the conclusion of employment. This section also provides civil liability for violations of these protections.

Justification: Section 202-k of the Labor Law was intended to protect broadcast employees by prohibiting, as a condition of employment, coven- ants not to compete. The protections provided by this section are, however, overly broad and unintentionally capture a number of items and situations including, among others, post-contractual confidentiality or non-disclosure provisions and accepting non-compete covenants in return for additional independent consideration. The bill provides these

exceptions and thus offers additional freedom and flexibility for broad- cast employees and reasonable protections for broadcast employers relat- ing to potentially sensitive confidential information respectively.

Prior Legislative History: New Bill.

Fiscal Implications For State And Local Governments: None to the state.

Effective Date: Immediately.