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PRINTER'S NO. 397
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
320
Session of
2021
INTRODUCED BY BARTOLOTTA, J. WARD, TARTAGLIONE AND KEARNEY,
MARCH 11, 2021
REFERRED TO LABOR AND INDUSTRY, MARCH 11, 2021
AN ACT
Prohibiting enforcement of covenants not to compete in broadcast
employment agreements.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Broadcast
Freemarket Agreement Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Broadcast employee." An individual who provides services
under an agreement with an employer.
"Covenant not to compete." An agreement between an employer
and a broadcast employee that is designed to impede the ability
of the broadcast employee to compete with the employer when a
separating event occurs.
"Employer." A person that engages in the transmission of
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radio or television programming and employs individuals under an
agreement to perform service relating to the transmission. The
term includes a television station or network, radio station,
cable station or network, Internet or satellite-based service,
new media, interactive media or any method that transmits or
otherwise offers news, weather, traffic, sports or entertainment
reports or programming.
"Separating event." A broadcast employee's voluntary or
involuntary discontinuance of employment with an employer.
Section 3. Prohibition.
A covenant not to compete is deemed contrary to public policy
and is void and unenforceable to the extent the covenant not to
compete restricts:
(1) Movement of a broadcast employee to a new employer.
(2) A broadcast employee from performing services to an
employer within a geographic area.
Section 4. Nonwaiver.
A purported waiver of the prohibition in section 3 of this
act shall be void and unenforceable.
Section 5. Construction.
Nothing in this act shall be construed to:
(1) Limit the period of time for which a party may agree
to maintain information as confidential or as a trade secret.
(2) Limit the geographic area within which the
information must be kept confidential or as a trade secret.
Section 6. Effective date.
This act shall take effect in 60 days.
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