HB 2558

                                                PRINTER'S NO.     3469
              THE GENERAL ASSEMBLY OF PENNSYLVANIA
                  HOUSE BILL
                  No. 2558
                                          Session of
                                            2026
INTRODUCED BY WAXMAN, GIRAL, FREEMAN, KHAN, VENKAT, NEILSON,
   KENYATTA, SANCHEZ, STEELE, INGLIS, PASHINSKI, D. WILLIAMS,
   GALLAGHER, BIZZARRO AND SHUSTERMAN, MAY 29, 2026
REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, JUNE 1, 2026
                                AN ACT
1 Prohibiting enforcement of covenants not to compete in broadcast
2    employment agreements.
3    The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1.   Short title.
6    This act shall be known and may be cited as the Broadcast
7 Freemarket Agreement Act.
8 Section 2.   Definitions.
9    The following words and phrases when used in this act shall
10 have the meanings given to them in this section unless the
11 context clearly indicates otherwise:
12    "Broadcast employee."    An individual who provides services
13 under an agreement with an employer.
14    "Covenant not to compete."    An agreement between an employer
15 and a broadcast employee that is designed to impede the ability
16 of the broadcast employee to compete with the employer if a
17 separating event occurs.
1    "Employer."     A person that engages in the transmission of
2 radio or television programming and employs individuals under an
3 agreement to perform service relating to the transmission. The
4 term includes a television station or network, radio station,
5 cable station or network, Internet or satellite-based service,
6 new media, interactive media or any method that transmits or
7 otherwise offers news, weather, traffic, sports or entertainment
8 reports or programming.
9    "New media."     The Internet, a mobile application, website,
10 podcast or other platform, that disseminates audio or
11 audiovisual content.
12    "Separating event."        A broadcast employee's voluntary or
13 involuntary discontinuance of employment with an employer.
14 Section 3.     Prohibition.
15    A covenant not to compete is deemed contrary to public policy
16 and is void and unenforceable to the extent the covenant not to
17 compete restricts:
18(1)   movement of a broadcast employee to another
19    employer; and
20(2)   a broadcast employee from performing services to
21    another employer within a geographic area.
22 Section 4.     Nonwaiver.
23    A purported waiver of the prohibition in section 3 shall be
24 void and unenforceable.
25 Section 5.     Construction.
26    Nothing in this act shall be construed to limit:
27(1)   the period of time for which a party may agree to
28    maintain information as confidential or as a trade secret;
29    and
30(2)   the geographic area within which the information
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1    must be kept confidential or as a trade secret.
2 Section 6.   Applicability.
3    This act shall apply to contracts entered into or renewed on
4 or after the effective date of this section.
5 Section 7.   Effective date.
6    This act shall take effect in 60 days.
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