Harvey Weinstein’s contract with The Weinstein Company reportedly blocked him from being fired over sexual harassment claims and settlements.
TMZ broke the wild story that he had specific language to stop a firing over sexual harassment allegations, as long as he wasn’t charged with a crime.
According to the contract, if Weinstein “treated someone improperly in violation of the company’s Code of Conduct,” he must reimburse TWC for settlements or judgments. Additionally, “You [Weinstein] will pay the company liquidated damages of $250,000 for the first such instance, $500,000 for the second such instance, $750,000 for the third such instance, and $1,000,000 for each additional instance.”
The contract says as long as Weinstein pays, it constitutes a “cure” for the misconduct and no further action can be taken. Translation — Weinstein could be sued over and over and as long as he wrote a check, he keeps his job.
The contract has specific language as to when the Board of Directors can fire Weinstein — if he’s indicted or convicted of a crime, but that doesn’t apply here.
This is the biggest bombshell since all this news broke. Who allows for a contract to be approved with language in it that specifically allows employs to stay who have been accused of sexual harassment as long as they aren’t charged with a crime? It’s complete insanity.
I would even argue that at this point the people who approved this contract should also leave the company. Approving this contract is essentially telling Weinstein he’s free to do whatever he wants as long as he doesn’t end up in handcuffs. That can’t ever be acceptable.
The dominoes have begun falling in Hollywood, and we’re going to see a lot more people likely lose their jobs before this horrific circus is over.