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Payola and Plugola PAYOLA AND PLUGOLA All employees of NYPR, and all persons broadcasting over WNYC AM 820, 93.9 FM and WQXR 105.9 FM need to understand and take steps to avoid the practices known as “payola” and “plugola.” Failure to comply with federal laws and FCC regulations regarding these practices may result in fines and imprisonment, and may call into question the station’s fitness for license renewal. Payola “Payola” is the undisclosed acceptance of, or agreement to accept, anything of value in exchange for on-air promotion. If you agree to accept money, services, or anything of value in exchange for giving airplay to any programming, without disclosing or reporting this sponsorship, you have committed payola. Payola is always illegal. If the sponsorship is disclosed, however, there has been no payola. It is therefore of vital importance that each person who receives something of value in exchange for any broadcast promptly discloses this payment to station management. The station management must then disclose the sponsorship on the air. If both levels of disclosure are performed, the broadcast will not be payola. To find a violation of the anti-payola law, the government need only prove that payment was made for the purposes of inducing the broadcast, even if the broadcast is never actually made. The disclosure must therefore be made immediately after the payment for a broadcast has been offered. Plugola “Plugola” is the on-air promotion by someone responsible for program selection of a venture, goods, or services in which he or she has a financial interest without disclosing this interest on the air. Plugola is similar to payola, but the difference is that no one needs to approach the broadcaster and offer something of value; a single employee can commit plugola simply by promoting his or her own financial interests using the station’s air. Plugola may concern plugs for any financial interests outside of one’s on-air duties, including a side business as a disc jockey for hire, personal public appearances, or an organization for which one serves as a board member for compensation. While plugola tends to be committed by on-air personalities or station managers, any person responsible for programming can be guilty of this practice. For example, a person who prepares program logs may schedule extra announcements for a company in which he or she has a financial interest. Plugola can only be legal if the employee discloses the financial interest to station management, and management in turn discloses this interest over the air. Management must be informed about specific relationships or affiliations of employees and persons appearing over-the-air which might lead to payola and plugola situations. If you have any questions as to whether a particular circumstance or relationship could constitute payola or plugola, contact the station's General Counsel at extension 4368. Revised 02-28-11 Page 1 of 4 CONFLICT OF INTEREST NYPR employees should not engage in any activities which would place their personal interests in conflict with the interests of NYPR, or any of its joint ventures (collectively referred to as “NYPR” below.) OUTSIDE EMPLOYMENT/BUSINESS INVOLVEMENT To avoid a possible conflict of interest, you should not accept employment (paid or unpaid) with any business which is directly or indirectly in competition with NYPR or any organization with which we conduct business. If you feel that outside employment or business involvement is justified in your case, you must get written permission from your manager before accepting any such employment. Hosts shall not do non- anonymous air work for any other electronic media organization without written request to and approval of the appropriate supervisor. These requests should be updated on an annual basis. In addition, you may not use NYPR equipment, supplies or facilities for any outside activities without the prior approval of your manager. Personal use of NYPR letterhead or other of NYPR’s identifying symbols is also prohibited. PERSONAL INVESTMENTS To avoid a conflict of interest, you should not have a direct or indirect financial interest in a business enterprise which supplies, purchases from, or has other business relations with NYPR. A listing of such enterprises is available from the Finance Department. This does not apply to equity investments if the investment represents less that 1% of the outstanding stock of a publicly held company. (Contributions to and/or service on the board of a not-for profit corporation do not constitute a “financial interest”.) BORROWING Under no circumstances should you borrow from an employee you supervise or an individual or enterprise doing or likely to do business with NYPR. ACCEPTANCE OF GIFTS To avoid any conflict of interest, you may not accept gifts, except those of insignificant monetary value (less that $50), from anyone with whom we do business or are likely to do business, including news sources and on-air guests. In addition, you may not accept free transportation or lodging from news or business sources or others with whom we do or may do business. If you have any questions as to whether the acceptance of gifts might constitute a violation of this policy you should speak with your manager. Revised 02-28-11 Page 2 of 4 RULES OF CONDUCT NYPR, like every organization, needs rules to guide employees in their work. The list of prohibited conduct which follows has been put into effect so you know what standards of conduct you must meet when at NYPR. Depending upon the circumstances, failure to comply with these rules may result in disciplinary action ranging from a verbal or written warning up to and including termination of employment. NYPR, in its sole discretion, will decide what disciplinary action to impose under the circumstances. If disciplinary action is to be taken, you will be notified promptly and privately of the action being taken and the reasons for it. You will also be informed what, if any, steps should be taken to correct the problem, and what action may be taken should there be a recurrence of the incident or problem. Please take the time to learn about NYPR work rules. The following list is not a limitation on NYPR’s right to terminate its employees. NYPR maintains the right to terminate an employee at any time, for any reason, with or without cause. In the interest of keeping NYPR the kind of place in which we will all be able to enjoy working, the following kinds of conduct are prohibited. Additional standards of conduct are contained elsewhere in the Handbook. Obviously, it is not possible to list every type of conduct which may result in disciplinary action and the following are meant to be an illustration rather than a comprehensive list. You should talk to your supervisor or manager if you are unsure of what to do in a given situation. The following types of prohibited conduct may result in discipline up to and including immediate discharge, depending upon the circumstances: Dishonesty, embezzlement, theft or inappropriate removal or possession of property, or conviction of a crime. Misrepresentation, either verbal or written, or falsification of employment applications as to a material fact which would have affected the employee’s being hired, or falsification of other documents, including time cards of the employee or another employee. Insubordination (including but not limited to verbal abuse or refusal to perform work assigned). Sleeping on the job. Willful or reckless damage to NYPR property or the property of other employees. Unauthorized removal of NYPR or employee property such as records, merchandise or equipment. Fighting or threatening violence. Sabotage or damage to NYPR property or merchandise, or to the property of customers or coworkers. Revised 02-28-11 Page 3 of 4 Receiving any referral fees, kickbacks, or gifts from vendors (other than those permitted under the Acceptance of Gifts Policy in this Handbook), guests or independent contractors conducting business with NYPR. Rudeness, discourtesy or unfriendliness towards listeners, station visitors and guests, including suggesting that a gratuity is required or expected for any service. Unauthorized possession of weapons of any type, including but not limited to firearms or explosive materials, on NYPR premises or during working hours. Driving a NYPR vehicle without a valid driver’s license or without proper authorization. Failure to report accidents or thefts to nearest available management employee. Unauthorized divulgence or removal of NYPR business records/information or listener and donor information. Unauthorized use of NYPR equipment, time, materials, facilities or NYPR’s name. Incompetence or inefficient or careless performance of duties, including failure to maintain proper work standards. Failure to observe working schedules. Being under the influence of alcoholic beverages, using or possessing, selling or transferring of illegal narcotics while working and on NYPR premises or while conducting NYPR business. A violation of any NYPR policy, procedure or rule. Working unsafely, failure to follow safety, security or health regulations or endangering the safety of others. Possession or distribution of obscene material and/or obscene actions or behavior on NYPR premises. Fraudulently claiming or receiving sick pay or disability benefits, or falsifying requests for leaves of absence. Willfully restricting, limiting or interfering with the work productivity or quality of another employee. Violation of the Plugola/Payola policy. No statement in this list or elsewhere in this Handbook is intended to or should be taken to affect the at-will employment relationship between NYPR and its employees Revised 02-28-11 Page 4 of 4 .
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