What's happening
This bill amends labor law to limit non-compete clauses for broadcast employees, except for management, sales, and high-salaried "key" employees.
Why it matters
Reduces the prevalence of non-compete clauses for most broadcast employees, making it easier for on-air and off-air talent (excluding management and high-salaried/key staff) to change jobs or stay within their industry, which can enhance employee mobility and bargaining power.
Defines "key broadcast employees" based on salary and market size, allowing non-compete agreements only for those earning high compensation (over $250,000 in large cities or $100,000 in smaller cities), which aims to balance employer interests in retaining top talent with broader worker freedom.
Preserves employers’ rights to enforce certain contract provisions after employment ends—like confidentiality, exclusive negotiations, and rights of first refusal—ensuring that trade secrets and critical business relationships remain protected even as non-competes are restricted.
Establishes civil liability for employers who violate these new rules, providing broadcast employees with the ability to seek damages, attorney’s fees, and costs, which may deter unlawful use of non-compete agreements and support fairer treatment in the industry.
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Who cares
Headline styles
Let Broadcasters Use Key Contracts
Plain English, a few words. Used as the page title.
Sponsors
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History
- Referred to labor
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
926
2019-2020 Regular Sessions
IN SENATE
January 9, 2019
Introduced by Sen. YOUNG -- read twice and ordered printed, and when printed to be committed to the Committee on Labor
AN ACT to amend the labor law, in relation to enacting the "fair broadcast employment act of 2019"
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Short title. This act shall be known and may be cited as the "fair broadcast employment act of 2019".
§ 2. Section 202-k of the labor law, as added by chapter 398 of the laws of 2008, is amended to read as follows:
§ 202-k. Protection of persons employed in the broadcast industry. 1. For the purposes of this section:
(a) "Broadcasting industry employer" includes individual television stations or networks, individual radio stations or networks, cable stations or networks, internet or satellite-based services similar to a broadcast station or network, any broadcast entities affiliated with any of the employers of this paragraph, or any other entity that provides broadcasting services such as news, weather, traffic, sports, or entertainment reports or programming.
(b) "Broadcast employee" means any on-air employee or off-air employee of a broadcasting industry employer, excluding management employees.
(c) "Key broadcast employee" means any broadcast employee, who at the time of signing an employment contract with a broadcast industry employer:
(1) is reasonably anticipated to receive a total annual compensation package of two hundred fifty thousand dollars or more from a broadcast industry employer that is licensed by the Federal Communications Commission in a city having a population of one million or more or is an entity with its principal place of business located in such a city; or
(2) is reasonably anticipated to receive a total annual compensation package of one hundred thousand dollars or more from a broadcast indus-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03073-01-9
S. 926 2
try employer that is licensed by the Federal Communications Commission in a city having a population of less than one million or is an entity with its principal place of business located in such a city.
2. [A] Subject to the provisions of subdivision three of this section, a broadcasting industry employer shall not require as a condition of employment, whether in an employment contract or otherwise, that a broadcast employee or prospective broadcast employee refrain from obtaining employment:
(a) in any specified geographic area;
(b) for a specific period of time; or
(c) with any particular employer or in any particular industry; after the conclusion of employment with such broadcasting industry employer. This section shall not apply to preventing the enforcement of such a covenant during the term of an employment contract.
3. The restrictions in the provisions of subdivision two of this section shall not apply to employees whose services primarily include sales or management functions, or who are key employees.
4. Nothing in this section shall be construed to limit the enforcement by a broadcasting industry employer of a post-contract (a) right of first refusal/right to match provision, (b) exclusive negotiation provision, or (c) confidentiality/non-disclosure provision in any employment contract.
5. Any person who violates this section shall be civilly liable to a broadcast employee for damages, attorney's fees and costs.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the labor law, in relation to enacting the "fair broad- cast employment act of 2019"
Purpose or general idea of bill
To clarify the protections of persons employed in the broadcast indus- try. To allow newly defined key employees and broadcast industry employ- ers to negotiate pursuant to terms long recognized under New York common law.
Summary of specific provisions
Section 1: provides that this act shall be known and may be cited as the "Fair Broadcast Employment Act of 2019."
Read the full memo (806 words)
Section 2(a) clarifies the definitions in the current section 202(k) (1) (a) making it clear that each individual broadcast station and network. entity falls within the scope of the legislation.
Section 2(b) No change for existing law
Section 2(c) amends section 202(k) by creating a new category of "key" employees that will be allowed to negotiate with broadcast industry employers for post contract term covenants not to compete. Under this provision, a "key employee" is defined as either:(1) compensated in the highest 10t of all non-management employees employed by the broadcast industry employer in New York, or (2) is one of five (5) designated key non-management positions employed by the broadcast industry employer in New York, provided the employer has notified the employee of that desig- nation.
Section 2. (A) amends current section 202(k) by exempting key employees from the limitations contained in the provision
Section 3: amends section 3 by clarifying that the provisions of that section do not apply to non-managerial key employees, as defined in section 2(c) of a broadcast industry employer.
Section 4: adds a new provision clarifying Section 202(k) to make it clear that the section does not limit in any way provisions relating to post-contract: (a) right of first refusal or right to match, (b) periods for exclusive negotiations, or (c) confidentiality/non-disclosure provisions in any employment contract.
Section 5: Existing section 202(k) (5) is retained. The existing enforcement provisions, indicating that violators may be civilly liable to a broadcast employee for damages, attorney's fees and costs, remain the same.
Justification
Under current Section 202(k), all employees and broadcast industry employers may negotiate for covenants not to compete during the term of the employment contract as part of the underlying employment contract. Such provisions remain. subject to the "reasonableness" requirements as determined by New York Common Law. This freedom is not extended to post contract term covenants not to compete, which are prohibited where they are part of the underlying employment agreement.
The proposed bill creates a limited exception to the prohibition on post contract term covenants not to compete for "key non-management employ- ees." Under the legislation, these key employees and employers would be able to negotiate a post contract covenant not to compete as part of the underlying employment contract. Key non-management employees are defined as 1) non-management employees compensated in the highest 10% of all con-management employees employed by the broadcast industry employer in New York, or (2) one of five (5) designated-key non-management positions employed by the broadcast industry employer in New York, provided the employer has notified the employee of that designation. This limited class of employees would be free to negotiate such provisions with a broadcast industry employer. Importantly, the post contract term coven- ants not to compete would still remain subject to the standards applica- ble under New York Common Law.
The impact of this minor change will be minimal. The overwhelming major- ity of broadcast industry employees, i.e., 90%, would remain subject to the existing limitations of Section 202(k). The legislation is designed to affect only those "key" non-management employees who generally are in a position to negotiate with their respective broadcast industry employ- ers. Moreover, post contract term covenants not to compete remain subject to the standards of New York common law. These standards govern nearly all employment contracts in the state of New York. The current law, Section 202(k), was enacted in 2008. It is an exception from the common law governing labor contracts, and uniquely singles out broadcast industry employers and employees. No other industry or profession is subject to such a unique limitation.
The proposed bill also clarifies existing law with respect to several provisions that are common in current employment contracts including: (1) the right of first refusal or right to match, (2) periods for exclu- sive negotiations, or (3) confidentiality/nondisclosure provisions in any employment contract. The bill simply clarifies that Section 202(k) never intended to limit the use of these provisions.
Prior legislative history
S.521-A of 2018 Referred to Labor S.521 of 2017 Referred to Labor S.6564 of 2016 Reported & Committed to Rules S.1948 of 2015 Referred to Labor S.6277 of 2012 Rules S.3666 of 2013 Referred to Labor S.3666 of 2014 Referred to Labor
Effective date
This act shall take effect immediately.
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