FTC Bans Common Media Biz Contract Clause: The Noncompete
In a move that could have far-reaching effects on the media industry, the Federal Trade Commission voted yesterday (4/23) to ban noncompete clauses in employment contracts for most U.S. workers. This is certainly going to be challenged in courts as The New York Times reports. “But the U.S. Chamber of
Commerce vowed to sue the FTC to block the proposal, calling it ‘an unlawful power grab’ in a statement shortly after the vote. The chamber, as well as the two dissenting [FTC] commissioners, has argued that the FTC doesn’t have the authority to address this issue and that it should be left to the states.” The Times piece notes that the rule becomes law 120 days after being published in the Federal Register – meaning sometime in late August – but that legal challenges could block or delay the change. In the radio industry, most on-air talent, programmers, and sales staff who work under written contracts have a noncompete clause that prevents them from working “across the street” usually for six months. If this new policy stands, it will be a monumental change for radio companies. Read the Times story here.
DirecTV and its leadership for working with us to find a mutually beneficial business agreement to bring our programming back to its customers. While we raised the issue of censorship relating to our removal, we now believe in DirecTV’s commitment to distributing diverse viewpoints, including conservative ones. DirecTV has made clear during our negotiations that it has always been focused on protecting its customers from the rising programming costs across the pay TV industry and never intended to limit one perspective or to target conservative voices. We accept their position and believe that our new agreement with DirecTV will allow them to continue to be a go-to-source for one of the most diverse lineups of news programming, now with three conservative news networks including Newsmax.” Newsmax Media CEO Christopher Ruddy will be speaking at TALKERS 2023 on Friday, June 2 at Hofstra University.