Utah TV non-compete bill passes out of Senate committee

SALT LAKE CITY — (KUTV) - A bill that bans non-compete clauses in television news contracts is on it’s way to the Senate floor for a vote.

Many employees in the local television news business sign a non-compete clause.

It forbids employees from leaving one station then immediately going to work for another.

Most non-competes are one yearlong, meaning that some employees are often forced to sit out of their chosen industry for as long as 12 months.

Non-competes also prohibit employees from seeking offers at competing stations.

The bill will ban non-competes for employees who make less than $47,500 and will allow those who make more money than that to go to work for another station the moment their contract ends but not if they leave the contract early or are fired.

All Utah television stations including KUTV opposed the bill, they argued before the labor committee today that it is unfair for government to target the Television industry for regulation, “we feel like we've been singled out and the rest of the industries will be facing this issue in future years,” says Dale Zabriskie of the Utah Broadcasters Association.

Zabriskie also says, that government shouldn’t be in the business of regulating employment agreements, “we don't think it's proper for the government to interject itself in private negotiations between an employee and employer,” Zabriskie said.

Allen Sullivan with Deseret Management, echoes Zabriskie’s concerns, adding that many businesses in Utah including, hospitals, tech companies, energy firms, marketing houses, and retail companies currently have non-competes, targeting TV stations says Sullivan doesn’t make sense, “we believe that the bill unlawfully singles out and punishes broadcast organizations, it is completely arbitrary,” says Sullivan.

Fox 13 anchor Bob Evans says reporters, anchors and producers know what they are getting into when they enter the news business, and he says, station invest a lot of money into the faces on air, “protecting the station’s investment in its people product and credibility is a legitimate concern,” Evans said.

Bill Gephardt, a former reporter with 2News, has been spearheading the effort to support H.B. 241 among people in the TV business.

He says he has talked with dozens of anchors, reporters, and producers about their experiences with non-competes, he says most viewers only know about the faces on the air who are governed by non-competes, but Gephardt says, it is the faces behind the camera who are most negatively impacted by non-competes, “there are three or 4 of them behind the scenes for every person you see on television.

Most of them earn under 30 or 35 thousand dollars a year. Some are full time some are freelance they’re also forced to sign non competes as a condition of employment,” says Gephardt.

Glen Beeby, a reporter with ABC 4 News laments that non-compete clauses force young reporters and anchors to leave Utah looking for higher paying jobs, “one thing I’ve noticed in my 10 years in broadcasting, is the young eager reporters of today no longer sticking around long enough to become the season veteran journalists of tomorrow and the non competes are the major part of that,” Beeby said.

The bill’s sponsor, Rep. Mike Schultz of Hooper says he has been hearing from dozens of TV employees about the negative elements of the non-compete clause, “oh my goodness I can't believe some of the abuses that I’ve heard the contacts I read, I feel sorry for you guys honestly I do they are so lopsided,” says Schultz.

The bill now goes to the Senate for a full vote.