Hollywood Resurrects Its Moral Clause, Due To The Slew Of Sexual Misconduct

The Post is reporting that a morals clause will be put in place in Hollywood after a slew of “bad actors” were accused of sexual misconduct, starting with Harvey Weinstein in October 2017.

The morals clause is designed to protect studios and distributors in the #MeToo era, The Post reports. Projects worth millions can be instantly tainted by a victim’s going public — leaving their future to the court of public opinion.

Netflix’s chief finance officer, David Wells, cast a light on the need for such protection in a January earnings call, saying his company took a $39 million write-down due to “the societal reset around sexual harassment.

“All you have to do is define what will trigger the clause, who determines if it has been triggered and what happens as a result,” said lawyer Sky Moore, who emphasized the clause he will be using on behalf of his distributor clients.

Kevin Spacey and The Ranch star Danny Masterson, both who were fired from their jobs due to sexual misconduct allegation, did not have a morals clause in their contracts. And both of them were paid.

In the future, actors who violate morals clauses would NOT be paid.