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Harvey Weinstein Contract Allowed For Sexual Harassment As Long As Weinstein Paid For Costs

October 12, 2017 | Posted by Ashish
Harvey Weinstein

Harvey Weinstein’s termination by The Weinstein Company may have been in violation of his contract, as it had a clause regarding sexual harassment and misconduct lawsuits that said he would not be fired as long as he paid out the costs associated with the claims. TMZ reports that Weinstein’s 2015 employment contract with his film company says that if he gets sued for other misconduct which results in a settlement or judgment against the company, Weinstein has to pay what the company owes along with a fine.

The contract notes that if Weinstein “treated someone improperly in violation of the company’s Code of Conduct,” he will pay “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.” As long as Weinstein pays the fine, no further action can be taken.

The contract stipulates that Weinstein can be fired if he’s indicted or convicted of a crime, or if he perpetuates “a material fraud against the company.” In that situation, he has a right to mediation and if that doesn’t work, he’s entitled to arbitration. The company knew that he had settled previous lawsuits brought by other women, but assumed it was to cover up consensual affairs, so it’s debatable whether “fraud” applies.

Sources connected with Weinstein say that he was never given a specific reason for his firing. Sources with TWC, on the other hand, say that the company had a right to fire Weinstein if he didn’t notify the Board of Directors of settlements. However, there do not appear to have been any settlements since the contract was signed.