The Morality Clause: How #MeToo Is Changing Hollywood Dealmaking

March 29, 2018Media Mention

Lost jobs. Employee sexual harassment workshops. And extensive morality clauses.

The sexual harassment reckoning spurred by the ouster of producer Harvey Weinstein amid allegations of sexual misconduct has reverberated throughout the entertainment industry. From moviemakers to actors, it's now altering how business is being done as lengthy provisions that allow dealmakers to fire stars for accusations of bad behavior become the norm.

The use of morality clauses — provisions that stipulate a party must uphold a good reputation or face termination of the agreement — is on the rise as studios and dealmakers rush to protect their investments against possible misconduct. Fox is among the studios trying to implement morality clauses, according to The Hollywood Reporter. Several other major and minor distributors have already begun doing so, sources say, with many more expected to follow suit.