Select an article from a professional journal or business pu

Select an article from a professional journal or business publication that discusses an issue that affects employment practices of your profession or industry (actual or intended). Your source should be a professional or business publication which is less than a year old. Read the article and prepare a 3 paragraph memorandum that provides a summary of the information and the key learning points. Define the type of employment involved. What questions does this article raise for you? Include a link to your article.

Solution

Article:

How Hollywood Insures Against Actors Behaving Badly By Anousha Sakoui and Christopher Palmeri, published in Bloomberg Businessweek, 14-Dec-2017

Summary

The employers and owners of any organization can be threatened with the malpractices and misbehaviors done by their employees and contractors. Generally, in the developed nations, government and all regulatory bodies consider the employer or owner responsible for the misconducts carried out by their employers. This is sometimes referred to as the vicarious liability of the superior respondent. Presently, the filmmakers and distributors of Hollywood are also not exceptions to this premises. In many cases, the distributors and producers are accused and fined for the misconducts done by the actors, directors, or any other member of the crew during or after the production of a film. The article specifically addresses the need for the search for a protection mechanism for the producers and film executives for their money invested.

At present, the producers and executives are protected by the employment-practices liability insurance and cast insurance where the insurer pays the losses incurred due to the death, illness, or injury of a particular actor or key member during the film production. But the authors are addressing some other issues. They are specific about the problems that arise due to actors and crew members misbehaving during and after the production which may include sexual assault, battery, physical harm, and intentional torts. The producers and filmmakers are looking for insurance products which can save them from the liabilities for which they are not directly responsible. The product will be similar to a “death and disgrace” policy which cover the cost of removing advertisements when a spokesman can’t keep his hands off the bottle or the interns.

The article brings to us few important observations. First, gradually, the employment practices are moving towards an era when the employers will not take the responsibility of every conduct that their employees or contractors carry out and they will not be accepting the loss incurred due to those incidents. Second, it is not about only who pays the loss. Note that the incidents, in these case, will be high profile in nature. So, the insurers will need to have huge protection for themselves. This will result in modification f the contract signed with the actors and professionals which are similar to the moral clause signed with the sportspersons and would let for a film star to be instantly fired without pay if he/ she engages in objectionable conduct.