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.
Take a day off. You get one free this year.
Here’s actual news copy, from Joe Connolly’s business report one morning on WCBS, NY: “One third of all domestic flights are now late, by an average of one hour.”
The embarrassing situation and accompanying financial vulnerability being faced by our colleagues at FOX News is a high-profile example of the consequences of audience “targeting” that has become the common positioning strategy in today’s competitive media marketplace. The process is simple: You give the specifically targeted audience what it wants, not necessarily what it needs, even if what it wants is of dubious quality or unhealthy and – in the case of political talk media – untrue. It is a problematic, unsavory practice that has been brewing in our industry for years and, in the case of FOX, the proverbial toxicity has just hit the fan.
