{"id":117,"date":"2018-02-15T17:14:16","date_gmt":"2018-02-15T17:14:16","guid":{"rendered":"https:\/\/www.sherin.com\/employment-blog\/?p=117"},"modified":"2021-06-10T19:13:16","modified_gmt":"2021-06-10T19:13:16","slug":"sexual-misconduct-and-the-definition-of-cause","status":"publish","type":"post","link":"https:\/\/www.sherin.com\/employment-blog\/2018\/02\/15\/sexual-misconduct-and-the-definition-of-cause\/","title":{"rendered":"Sexual Misconduct and the Definition of \u201cCause\u201d"},"content":{"rendered":"<p>The Balles v. Babcock Power Inc. decision sheds light on whether sexual misconduct constitutes \u201ccause\u201d and provides go-forward guidance to all parties drafting and negotiating (or re-negotiating) \u201cfor cause\u201d language in employment and compensation agreements.<\/p>\n<p>In the spring of 2017, before the emergence of the #MeToo movement, the case of\u00a0Balles v. Babcock Power Inc.\u00a0was decided in Massachusetts.\u00a0The case\u00a0involved a company\u2019s \u201cfor cause\u201d termination of an executive upon learning of his sexual conduct with a subordinate. The judge ultimately sided with Eric N. Balles on the issue of \u201ccause\u201d under the stockholder agreement, and ordered the employer to return his stock and pay all dividends.<\/p>\n<p><a href=\"https:\/\/www.financialexecutives.org\/FEI-Daily\/February-2018\/Sexual-Misconduct-and-the-Definition-of-Cause%E2%80%9D.aspx\">Click here to read the full article, published on <em>FEI Daily.<\/em><\/a><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Balles v. Babcock Power Inc. decision sheds light on whether sexual misconduct constitutes \u201ccause\u201d and provides go-forward guidance to all parties drafting and negotiating (or re-negotiating) \u201cfor cause\u201d language in employment and compensation agreements. In the spring of 2017, before the emergence of the #MeToo movement, the case of\u00a0Balles v. Babcock Power Inc.\u00a0was decided [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":119,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[],"tags":[],"class_list":["post-117","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Sexual Misconduct and the Definition of \u201cCause\u201d - Employment<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.sherin.com\/employment-blog\/2018\/02\/15\/sexual-misconduct-and-the-definition-of-cause\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sexual Misconduct and the Definition of \u201cCause\u201d - Employment\" \/>\n<meta property=\"og:description\" content=\"The Balles v. 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