Connecticut
Governor M. Jodi Rell approved a bill last month banning "noncompete" and "right
of first refusal" provisions from broadcast employee contracts. The bill,
originally intended for security guards, was expanded to include employees of
local broadcast networks. It then gained support from the American Federation of
Television and Radio Artists. The law does not cover cable networks.
The so-called
“noncompete” clause bars former employees from working for a competitor in the
same market for a certain period of time after termination. The law is also the
first in the nation to ban “right of first refusal” when a contract has expired.
This clause refers to an employer’s right to match the offer of another company
that wishes to hire a former employee. Unless the other company then outbids
with a counteroffer, the individual must be re-hired by the former employer.
Connecticut is the first state to ban the “right
of first refusal” clause in any manner. “Noncompete” clauses are already banned
in certain states such as California.
