As recently as a few decades ago, employers typically didn’t care what most of their employees did on their own time if it didn’t affect their work — unless they did something so egregious that it made the local news.
Now, it only takes minutes for someone’s bad behavior to be captured on a cellphone, uploaded to one or more social media sites and make its way around the world. Within hours, outrage can mount and internet sleuths can identify the person and their employer. That employer can face widespread calls to fire that person or face a boycott.
That’s why morals clauses (sometimes called “morality clauses”) are becoming a more common part of employment agreements. These used to be used largely for celebrities and corporate leaders whose private actions could make the news and cause embarrassment for their employer or a company whose products they endorsed.
By including a morals clause in some or all employee contracts, employers can make it easier and faster to sever ties with an employee with less risk of legal repercussions. That quick action can allow businesses to preserve and even enhance their reputation if an employee has acted in a way that is antithetical to the organization’s values.
Developing an enforceable morals clause
Morals clauses need to be written carefully. They should be specific enough that employees know what kinds of speech or actions qualify as grounds for termination. However, they shouldn’t be so specific that an employee could argue that what they did isn’t included.
That’s why strong morals clauses focus on the effect of an employee’s behavior rather than on specific behaviors themselves. They may reference any words or actions that could harm the reputation and viability of the organization.
These clauses also need to detail potential penalties if an employee violates the morals clause. The ability to suspend or terminate someone who violates the clause can be critical to managing a public relations crisis. There may be additional consequences, like forgoing accrued bonuses or severance.
The sooner an employer can make a public statement that it has taken action, the faster it can stem the damage caused by an employee caught on video in a racist or homophobic rant at their local grocery store or taking part in a neo-Nazi rally – to name just two possible examples.
Having experienced legal guidance can help employers craft and, when necessary, enforce morals clauses. This can make a significant difference in protecting their organization’s reputation and success.