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No-Compete Clause Faces Competition

February 19, 2002
By: Ashley Hall
State Capital Bureau

Prohibition of the no-compete clause is facing competition in committee. Ashley Hall has more in Jefferson City.

Story:
RunTime: 42
OutCue: SOC

Physicians and broadcast journalists often face no-compete clauses in their contracts, which prohibits them from working for competitors for up to a year after the contract expires.

Rep. Craig Hosmer says that even though there are a few cases where the no-compete clause would be proper, it is not used in that manner and therefor should not be allowed.

Actuality:
RunTime: 13
OutCue: boiler plate
Contents: Rather than just saying non competes are not proper...just put in as a boiler plate.

The origional purpose of the no-compete clause was to protect trade secrets and key employees, but now serves as a way to keep wages down and restrain competition.

SOC


Many broadcast journalists enter into no-compete agreements when they sign their contract, which some say infringes on their first amendment rights. Ashley Hall has more in Jefferson City.

Story:
RunTime: 42
OutCue: SOC

Rep. May Sheve is sponsoring a bill that would disallow the use of the no-compete clause in journalist's contracts, therefore allowing them to work for their company's competitors after the contract expires.

A representative for the American Federation of Television and Radio Artists, Wade Bondman, brought up the first amendment issues associated with the clause.

Actuality:
RunTime: 13
OutCue: scary thing
Contents: We all know broadcast media are one of the primary means through which we exercise our freedom of speech...used to silence peoples voice and that's a scary thing.

Approximately 60 percent of Missouri broadcast companies require employees to sign no-compete clauses.

From Jefferson City, Ashley Hall.