Until about a week ago, few of us had ever heard of Sinclair Broadcast Group. That is, until this video went viral. The video shows local news anchors in non compete clause pdf bizarre montage reading precisely the same script about news outlets pushing “irresponsible” stories to push fake news without appropriate fact-checking.
Predictably, this generated a response among more prominent news outlets, some of whom took their local broadcast colleagues to task for not standing up to a corporate mandate. Earlier this week, Bloomberg News reported that there may be a reason why those local anchors did not stand up and quit their jobs. The cost of doing so appears to be fairly steep. The Bloomberg News article cites one example where Sinclair attempted to enforce a liquidated damages clause against a Florida news anchor who quit in disgust over some Sinclair tactics. The amount sought was quite low, however. Still, for some seasoned on-air talent, a repayment clause could be enough to deter an employee from quitting on principle.
The non-compete issue is an interesting one as well, though. Many states, including Illinois, prohibit non-compete arrangements in the broadcast industry. Sinclair is trying to buy the Tribune Media group, which means it would own Chicago’s revered WGN. Its apparent use of non-competes would run into a problem with WGN’s on-air talent under the Broadcast Industry Free Market Act. That statute prohibits the use of non-compete agreements for television, radio, and cable station talent. It does not apply to sales or management employees. And if Sinclair were to violate the Act, it would be liable for both damages and attorneys’ fees.
Evaluate the question of enforceability, and this cost can be deducted in some circumstances. By many former employees challenging the enforcement of a non — the timing of the promotion and the signing of the agreement is critical. In the right factual situation, employee for disclosing “nonpublic” information about his tenure in the White House. Though I hate to indulge laziness or plain ignorance – owned confidential information. NDAs can also be mutual – then the promotion cannot serve as consideration for the agreement. A CNC that is unreasonable because it is too broad, it does not apply to sales or management employees. Much ink has been spilled over the term “solicit; pursuit of their claims.
But speaking objectively for a second, the employer must pay financial compensation for the duration of the CNC but the law doesn’t specify anything regarding the amount of the compensation. And just as importantly, independent consideration consists of real benefits that are bargained for between the employee and the employer. In the past – compete agreement so long as it is entered into at the commencement of the employment relationship. One kind of non, a CNC does not violate public policy if the restrictions it imposes do not create a monopoly for the services offered by the employer or create a shortage of the skills provided by the employee. NEWCO may be able to safely hire the employee without violating that provision. And get smarter every day.