I came across this valuable piece of information at TVjobs.com

WHAT’S A CONTRACT?
By: Dave Brunner, Talent Agent

Congratulations! You just got your first job in television! Now they send you a contract and you have no idea what to do. Let’s try to answer some questions you have and try to make things a little clearer.

WHAT’S A CONTRACT?

A written agreement between two parties. A contract should spell the important info out ( length of contract in years,start date, salary, what’s expected of both parties, etc.). Even though the station has the right to let you go at any time, the contract at least makes it a little harder to get rid of you. It prevents you from being an at-will employee. Keep in mind, a contract SHOULD protect both parties, but is always written in favor of the employer!

WHY DO THEY WANT A CONTRACT?

The station feels that they have put sufficient time and money in training you and promoting you. They don’t want to lose you in six months. Especially to the station across town. The station wants to make sure that you are committed for the long term. Even the small stations want a non-compete in their contracts. They want to be sure that if you are going to work for another station in town, you have to sit out for a period. Usually 6 months to a year.

HOW LONG SHOULD I SIGN FOR?

You usually don’t have a say in the matter. Stations want you to sign from 18 months to 3 years (with the average being 2 years). I think it is ridiculous to sign a long term deal with a station for $16K a year for three years. But, let’s face it. You’ve always wanted that first tv job, and here it is. Are you going to say no, because it ties you up for 24 months or more?

WHAT SHOULD I LOOK OUT FOR?

ALWAYS have someone else look at the contract! If your parents have a laywer, send him a copy. My agency looks over contracts for a very small fee. It is worth it! You want to understand it throughly. You don’t want surprises. Some stations make you pay them if you leave your contract early. Some contracts pay you the same money if you get promoted from reporter to anchor during your term. The few dollars you spend on a contract professional is worth it in the long term!

OTHER IMPORTANT THINGS.

It’s your first contract. Don’t expect perks. Stations are cutting down on them. You should not expect money for clothes, make-up, dry cleaning, etc. Benefits yes, perks no! Also, understand that if you sign a two-year contract, it is (2) one year contracts AND THEY ARE NOT GUARANTEED! Also, if you are in market #190, an out for Top 50 is ridiculous. You most likely will not make a jump like that. The station is not doing you a favor by giving you those outs. An out for a TOP 100 after the first 18 months is more realistic!

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