How Companies Address #MeToo Claims in Executive Employment Agreements Matter
By explicitly listing sexual harassment within the definition of “cause” for dismissal in an executive’s employment agreement, a company can avoid paying out hefty benefits to potentially bad actors, advises Ashley K. Pittman in Hutchison PLLC’s employment law blog.
“This can have a big impact,” she writes. “In addition to the direct economic effects and the ability to terminate someone to preserve and strengthen your corporate culture, your company can potentially avoid the public perception that the departing executive was somehow rewarded for bad behavior.”