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No-Compete Clause Faces Competition

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

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.

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.

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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.

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.

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

From Jefferson City, Ashley Hall.