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In an article published in Law360, Segal McCambridge Attorney Masood Ali recounts the recent Coldplay Kiss Cam Incident, where the CEO and HR executive of Astronomer were caught on a kiss cam embracing each other at Coldplay’s concert at Gillette Stadium. Masood breaks down the incident, examining the potential workplace employment policies and tools that employers should consider in the event of misconduct by an employee outside of work hours.
“Morality clauses are generally distinct but related provisions that complement an employer’s code of conduct and anti-fraternization policies; they are enforceable so long as they are clearly defined and employees have notice of what is expected. These clauses are more prevalent in the entertainment industry but are used in the employment context as well. Morality clauses give a company the unilateral right to terminate an agreement if the employee engages in conduct that negatively impacts the image of the company.”
In the Coldplay case, having a clause like this is essential since Astronomer could have terminated the CEO and HR executive for violating the morality clause in their employment agreements. However, it's not surprising that the two chose to resign, as these situations are often complex and involve considerations such as severance and compensation. It's common for employers and employees to negotiate a resignation rather than take the issue to court.
“For anti-fraternization policies, romantic workplace relationships can create conflicts of interest and potential favoritism as well as harassment claims - especially where power imbalances exist between executives and subordinates. Employers should implement clear policies requiring disclosure of relationships and prohibiting relationships where a power imbalance exists, such as between executives and direct or indirect subordinates.”
Read the story in full, click here (subscriber-based).
