From the archives: Do you need a morals clause?

The seemingly 24/7 exposure, over and over, of the CEO with his arms wrapped around his HR Director at the concert this summer got me thinking about a lot of things. Here’s one: a morals clause in an employment contract. A Texas case from 15 years ago still proves very apt for today.

Morals clause

TV reporter Virginia Galaviz agreed to the following when she became employed at KSAT-TV in San Antonio:

If at any time Employee fails to conduct himself or herself with due regard to public morals and decency, or if Employee commits any act or becomes involved in any situation or occurrence tending to degrade Employee in the community or which brings Employee into public disrepute, contempt, or scandal, or which materially and adversely affects the reputation or business of [the station] or the standing of [the station] as a broadcast licensee, whether or not information in regard thereto becomes public, [the station] shall have the right to terminate the [Employment] Agreement on twenty-four (24) hours notice to employee.

Unfortunately, she became embroiled in highly visible situations involving allegations of intoxication, possessing a firearm, and domestic violence, with the last including a film clip shown on TV of her in handcuffs. She was terminated pursuant to this clause. She sued for breach of contract.

Power of words

So, the courts were required to compare the conduct with the terms of the clause and determine if the first fits within the second.