A class action suit is being filed to challenge a clause in CBS Radio employment contracts. Mike Murphy, formerly of WSCR-AM, believes that covenants giving CBS a right of first refusal if an employee seeks work elsewhere in the area are illegal in Illinois.
According to a report in Crain’s Chicago Business, Murphy believes that CBS’s requirement pertaining to a 50-mile radius around the station and a window encompassing the 90 says before terminating employment and six months following termination is illegal.
The contract stipulates that an employee such as Murphy may not enter into an agreement with another station during the time period, within the 50 mile range, without first offering CBS a chance to retain the employee’s services on similar terms.
Murphy filed a class action proceeding against CBS Radio East Inc. and Infinity Broadcasting Operations Inc. on behalf of all WSCR employees who have similar contract clauses.
According to CCB, Murphy left the station last summer, was free of the six month bond of the contract last month, and filed his suit in a Cook County IL court 5/28/10.
RBR-TVBR observation: As non-competes go, this one actually seems fairly benign. But we are not experts on Illinois law. The results of Murphy’s day in court should be interesting, but of course, may not apply to your state.