Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Labor and Public Employment, to which was referred H.B. No. 1769 entitled:

begs leave to report as follows:

The purpose of this bill is to protect the employment rights of broadcast employees. Specifically, this bill would make it unlawful for a broadcast employer to include a "non-compete clause" in any employment contract with a current or prospective broadcast employee.

The Hawaii Government Employees Association, International Brotherhood of Electrical Workers, Radcliffe and Associates, LLC, Hawaii State AFL-CIO, Screen Actors Guild Hawaii Branch, American Federation of Musicians-Hawaii Local 677, and a concerned citizen testified in support of this measure. Hearst-Argyle Television, Inc., Clear Channel Communications, Emmis Communications, and Raycom Media testified in opposition to this bill.

Your Committee finds that young, talented, local individuals serve as the "on air" talent for many of the media outlets throughout the State. These individuals often grow quickly in the business and become marketable talent worthy of earning the best compensation packages. However, "non-compete clauses" contained in many contracts these individuals sign prevents this from happening.

Although "non-compete" clauses are common in businesses today, your Committee finds that this measure deserves further discussion and consideration.

As affirmed by the record of votes of the members of your Committee on Labor and Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1769 and recommends that it pass Second Reading and be referred to the Committee on Judiciary.