American Apparel Reaches New Low, Makes Employees Agree to $1 Million Penalty

June 23, 2010 • Fashion

American Apparel's CEO Dov Charney (something is clearly wrong with this man)

Ick. So in the latest installment of the soap opera known as American Apparel, the melodramatic company is out crying online publication Gawker for publishing some non-too-flattering material regarding the retailer's dress code and hygiene requirements. At this point, anyone who follows fashion media is no stranger to AA's and—more specifically the company's CEO Dov Charney's—inane and ridiculous behavior. But becoming the laughing stock of the fashion world is clearly not enough for Charney. He insists on giving us more reasons to dislike him and his company.

His newest eye-rolling move (can the guy get any more lame?) is coming up with a confidentiality agreement that every new hire now has to sign. In the agreement, every employee must sign off that they cannot make any comment to the press regarding the company and, if approached by a reporter, they must alert AA reps immediately. For what? So they can throw a tantrum in true Charney-like form? If that clause wasn't laughable enough, the agreement goes on to articulate just why employees need to be mindful of these things—apparently, Charney thinks he's somewhat famous. Infamous, more like it. It states:

You understand that the Company is a high profile publicly traded
company that is vulnerable from a media perspective. You also
understand that that the Company's Chief Executive Officer, Dov
Charney, is considered an international business celebrity and has
become one of the most recognized CEOs in the fashion industry.

Give me a break. And finally, the best part is that if any employee were to breach the terms in the contract, they would be liable to pay a penalty of $1 million dollars!! Seriously! Perhaps we should start calling Charney, Dr. Evil. It's not like it would be that far off.

Read the full story on what they've had to put up with at Gawker.

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-Alia Rajput

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