Disgraced Hollywood producer Harvey Weinstein’s contract with The Weinstein Company reportedly included a clause that allowed for sexual harassment lawsuits, as long as he paid for the settlements.
The stunning development is causing some people to question if the company was aware of Weinstein’s misconduct long before he was exposed as an apparent sexual predator.
TMZ has more on the details of the contract:
TMZ is privy to Weinstein's 2015 employment contract, which says if he gets sued for sexual harassment or any other “misconduct” that results in a settlement or judgment against TWC, all Weinstein has to do is pay what the company's out, along with a fine, and he's in the clear.
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 Weinstein Company reserved the right to fire Weinstein if he failed to disclose settlements to the company, though it’s unclear if that happened. Supposedly, the contract also allowed the company to fire Weinstein if he were convicted of a crime, which hasn’t happened thus far.
Either way, America is bound to be a lot more disgusted with Hollywood if TMZ has the details of his contract correct.