Dozens of news anchors robotically intoned “This is extremely dangerous to our democracy,” after reciting what turned out to be a script by Sinclair Broadcast Group, owner and operator of 193 local TV stations across the U.S. Dan Rather called it Orwellian, and many have asked in amazement: why would local journalists across the nation allow themselves to be used in such a demeaning way?
The answer is clear: people need their jobs. And the anchors employed at Sinclair Broadcast stations have contracts that don't just bind but entrap them.
Among other things, Sinclair requires its employees to pay a fee if they leave their jobs before their contract terms end. For example, an employee making $50,000 annually might have to pay in the ballpark of $10,000 if she wanted to leave after one year of a two-year term.
While it’s plainly illegal to impose a penalty on employees for leaving a job, Sinclair characterizes this requirement as “liquidated damages”.
The Sinclair contracts also contain a non-compete clause, barring employees from working for competitors for a set time period after separation. Some states prohibit or limit non-compete clauses. In most other states, case law allows non-compete clauses only when they protect trade secrets and requires them to be reasonable in time and geographic scope. But why would an individual risk the wrath of a conglomerate like Sinclair or even have the money set aside to retain a lawyer?
Unfortunately, the use of employment contracts to trap and exploit workers is a growing trend, including for low-wage workers, who may “sign” the contracts rapid-fire among a pile of papers in the HR office or among a string of touch-screens, and who often don’t receive copies of their own contracts. Worst of all, they have no real ability to consult with lawyers or understand what they’re giving up; and they have no choice but to sign if they want the job.
