Weinstein Contract May Have ‘Allowed’ for Sexual Harassment
The disgraced producer may actually have a case for 'wrongful termination,' as a shocking new report from TMZ reveals
According to a 2015 employment contract obtained by TMZ, Harvey Weinstein may have been trying to give himself the right to harass employees — as long as he ended up shelling out money in the end.
The contract states, according to TMZ, that if Weinstein “treated someone improperly in violation of the company’s Code of Conduct,” he must reimburse The Weinstein Company for any settlements or judgments that came about because of his actions.
"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," states the contract, as TMZ reported.
The contract then says the reimbursement of lost funds creates a "cure" for Weinstein's misconduct and that no further action would be required.
The TMZ report indicates that Weinstein could be fired for fraud against the company or if he was indicted for or convicted of a crime. As TMZ put it bluntly: "Translation — Weinstein could be sued over and over and as long as he wrote a check, he keeps his job."
It also states he is entitled to mediation and then arbitration before he can be fired from the company.
A board member told TMZ he was aware of some of Weinstein's payouts to women, but assumed these payouts were all to do with consensual affairs, rather than payouts for harassment or assault.
Harvey Levin, a former lawyer and now the executive director of TMZ, told Fox News about the contract, "The short story is this: The Weinstein Company allows for sexual harassment under the contract it signed with Harvey Weinstein."
He continued, "Here's what we know: In October of 2015, Harvey Weinstein signed a new contract with [The Weinstein Company], and under the new contract, it says that if Harvey Weinstein gets sued for sexual harassment or any other kind of misdeed and the company has to pay the judgment or a settlement, Harvey Weinstein can make everything good by doing two things. Number one: He has to pay the company back for what it [the company] paid the victim. Number two: Harvey has to pay a fine."
Levin revealed that Weinstein may actually have a case for "wrongful termination" against the company based on the absurd contract.