By Brandon Sipherd

Conan O’Brien is quitting as host of the “Tonight Show” after NBC pushed O’Brien from the 11:35 p.m. time slot to after midnight to accommodate Jay Leno.  O’Brien refused to comply with NBC’s order, contending the move violated his employment contract.

O’Brien is a member of various entertainment industry unions like the Writers Guild of America and the American Federation of Television and Radio Artists.  However, the terms of the unions’ collective bargaining agreements are not at issue here.  Instead, O’Brien’s employment relationship with NBC is governed by the terms and agreements of his employment contract, which is common for high-level executives and celebrities.   Therefore, the situation’s outcome will be based on the language of O’Brien’s employment contract.

O’Brien’s employment contract guarantying him the late night slot of 11:35 p.m. is the original question posed.  O’Brien’s contract did not contain an expressed guarantee with regards to his show’s time slot.  He was only guaranteed the “Tonight Show” which he argues is not 12:05 a.m.  If the contract had clearly expressed the show’s time, he would be in a much better position.  Both David Letterman and Jay Leno have contracts that guarantee a specific time-sport.

However, now that O’Brien has decided to relinquish hosting the “Tonight Show”, the issues are focused on how long he will have to wait before taking a new job with a rival network and the amount of money the network will have to pay.

Resolving these employment issues will be costly for NBC.  O’Brien currently earns around $12 million annually and there are two and a half years remaining on his contract.  It is estimated that O’Brien’s severance package will range somewhere from $25 million to $35 million.  The total amount that NBC will have to pay ultimately depends on several issues, including how long O’Brien will have to stay of the air.

Leeds Morelli & Brown, PC is a nationally recognized leader in the area of employment law. Our employment law attorneys are dedicated to resolving issues of employment and contract law.  Our firm has had considerable success in handling matters such as these throughout Long Island and the New York City area.  We take great pride not only in providing quality legal service and representation, but also in being there for clients when they need it most.

For more information, contact Leeds, Morelli and Brown, PC at 1-800-585-4658 for a free consultation.