American Apparel announces new sexual-harassment policy

After ouster of founder, American Apparel offers new policy on sexual harassment

A month after firing its founder over alleged misconduct toward female employees, American Apparel on Wednesday unveiled a new sexual-harassment policy. 

The detailed new policies prohibit "discriminatory slurs, or any other remarks, jokes or conduct that, in the judgment of the Company, create an offensive or hostile work environment or otherwise constitute abusive conduct." Moreover, managers and subordinates can no longer have relationships.

"No management-level employee may make sexual advances, welcome or unwelcome, toward any subordinate, regardless of whether the subordinate reports to the management employee, either directly or indirectly," the company writes in its new policy

Dov Charney, the company's founder, was fired in December after a lengthy suspension and an internal investigation found that "it would not be appropriate for Mr. Charney to be reinstated as CEO or an officer or employee of the company." 

Charney has been dogged for years by sexual-harassment lawsuits from employees and accusations of inappropriate conduct with workers.

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FOR THE RECORD

Jan. 7, 11:43 a.m.: An earlier version of this article stated that allegations of sexual harassment against Dov Charney were raised last year. The allegations came over several years.

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In November, American Apparel reported a larger-than-expected loss in the third quarter. American Apparel said it lost $19.2 million, or 11 cents a share, in the three months ended Sept. 30.

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