Lately, we’ve been witnessing some people who have had long, distinguished (in many cases) careers step down or “retire” from their positions because their names surfaced in documents released around convicted sex offender Jeffrey Epstein. Others are feeling public pressure to do the same.
Most companies don’t have executives or other employees involved in high-profile scandals involving sex offenders or Jumbotrons. However, it can still be important for businesses to be able to cut ties quickly and easily without legal consequences if someone tied to them does something that can cause serious harm to that business.
That’s why morality or morals clauses have become increasingly common in employment contracts – especially for CEOs, partners and board members. They’re also common in contracts with celebrities, sports figures and others who represent the company or one of its brands.
What is the intent of a morality clause?
Besides facilitating the removal of someone for bad or embarrassing behavior, morality clauses also serve as a deterrent to such behavior. This applies not just to those at the top of the company, whose words and actions may be widely followed.
People at any level of a company can find themselves (and by extension their employer) under fire for posting something highly controversial online or being caught on someone else’s phone behaving badly in public. It doesn’t take long for a person recorded hurling racial or other slurs or otherwise bullying someone on video to be identified, along with their employer, and for calls of a boycott if that person isn’t fired to grow.
The keys to an enforceable morality clause
A morality clause typically addresses unethical and immoral behavior that can damage a business’s reputation and result in financial harm. It generally also includes hate speech as well as public disparagement of the employer or anyone associated with them. Certain criminal behavior is generally covered as well.
The language needs to be specific enough that the employee understands what is covered. However, it shouldn’t be so specific that there are unintentional loopholes in the clause. It’s important to balance the rights of people to live their lives with the need for the company to protect its reputation and bottom line. That’s why experienced legal guidance is crucial in crafting and enforcing a morality clause.