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Moral Clauses: Why a Red Scare Tactic Revived In the #MeToo Era Could Lead to a Fight With the Guilds

Ivy Kagan Bierman, chair of Loeb & Loeb’s Entertainment Labor practice, is quoted in an article published by The Hollywood Reporter discussing the enforcement of moral clauses in employee contracts by major entertainment studios.

According to the article, employers in Hollywood utilize moral clauses as an attempt to deter bad behavior. “Early on with the #MeToo movement we saw companies and brands going very quickly to terminating people, and they wanted to be able to rely on their morals clause to do it,” Ivy said.

On the other hand, moral clauses can be difficult to enforce because they often include “problematic broad phrases.” “In some cases, the clause as drafted didn’t allow it because it had to be proven,” Ivy noted. She went on to mention that language has evolved so companies don’t necessarily have to wait on proof. “There have been tweaks in the language, where it can be alleged to have happened, or believed to have happened,” adding that she advises her clients to avoid impulsive firings.

Click here to read the full article on The Hollywood Reporter’s website.