STAND. COM. REP. NO. 698-04
Honolulu, Hawaii
, 2004
RE: H.B. No. 1769
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Second State Legislature
Regular Session of 2004
State of Hawaii
Sir:
Your Committee on Judiciary, to which was referred H.B. No. 1769 entitled:
"A BILL FOR AN ACT RELATING TO EMPLOYMENT CONTRACTS FOR BROADCAST INDUSTRY EMPLOYEES,"
begs leave to report as follows:
The purpose of this bill is to protect the employment rights of broadcast employees from contract provisions that restrict the ability to seek and accept employment with a competitor broadcasting company.
IBEW State Federation, Hawaii State AFL-CIO, Screen Actors Guild Hawaii Branch, American Federation of Musicians, Hawaii Local 677, Hawaii Government Employees Association, International Brotherhood of Electrical Workers, Local 1260, and several concerned individuals testified in support of the measure. Hearst-Argyle Television, Inc., Clear Channel Communications, Emmis Communications, Raycom Media, Clear Channel Radio, KHNL/KFVE, and a concerned individual testified in opposition to the bill.
Your Committee finds that contract terms commonly used in the Hawaii broadcast industry restrict employees from working for competitors. Broadcast employers contend that such clauses are necessary to protect their investment in "on air" personalities who develop brand identity. Your Committee finds that this may be true for those on air personalities that are marketed by the broadcast stations, but it is not true for those employees who are breaking into the industry and paid at the bottom of the industry standard. Your Committee was particularly disturbed about the lower-paid on air employees who have been required to remain out of the employment market when terminated or upon the expiration of their contracts.
Your Committee has amended this bill by:
(1) Deleting the contract restrictions as defined by the term "prospective employment access restriction";
(2) Amending the definition of "broadcast employee" to mean an individual who was hired primarily as an on air personality;
(3) Prohibiting broadcast employers from inserting contract terms that prevent a broadcast employee from accepting and commencing employment with another broadcast employer upon termination of employment;
(4) Changing the amount of damages that may be recovered to $25,000;
(5) Specifying that the provisions of the bill would apply to contracts executed after the effective date of this bill; and
(6) Making technical, nonsubstantive amendments for clarity and style.
As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1769, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1769, H.D. 1.
Respectfully submitted on behalf of the members of the Committee on Judiciary,
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____________________________ ERIC G. HAMAKAWA, Chair |