Workplace Morals Clauses Take Hold Beyond Show Biz in #MeToo Era

A recent jury verdict against former PBS personality Tavis Smiley shows the power morality clauses can wield, at a time when the contract provisions once only common in Hollywood gain broader relevance in the workplace thanks to the #MeToo movement.

Morality clauses, which allow companies to terminate contracts based on behavior that could damage corporate reputation, largely appear in contracts for Hollywood actors and endorsement deals with stars or athletes. But their use has expanded into C-suites as employers on Wall Street and beyond seek to avoid backlash from executive misconduct that can hit their bottom lines.

“With the #MeToo ...