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Netflix documentary shines spotlight on sexual harassment and the legal battle of Morales v. American Apparel

On Behalf of | Jul 3, 2025 | Sexual Harassment

The Netflix documentary “Trainwreck: The Cult Of American Apparel” delves into the rise and fall of the iconic clothing brand, American Apparel, and its controversial founder, Dov Charney. The film explores the company’s unique marketing strategies, toxic workplace culture, and the numerous allegations of misconduct that ultimately led to its downfall. One of the stories featured is that of Irene Morales, whose legal battle against American Apparel brings attention to the issues surrounding sexual harassment and the rights of victims.

Morales v. American Apparel: A case study

Irene Morales, represented by attorney Eric Baum from Eisenberg & Baum, LLP, filed a lawsuit against American Apparel, alleging sexual harassment and misconduct by Dov Charney. Victims of sexual harassment in these types of situations have specific rights designed to protect them and provide avenues for justice. These rights include:

  • The right to a safe and respectful workplace free from harassment
  • The right to report harassment without fear of retaliation
  • The right to seek legal recourse through litigation or other means

The Netflix documentary provides workers from American Apparel a platform to share how they were forced to endure harassment. Though the story is difficult to watch, it lays the foundation for a conversation on important lessons and how victims in similar situations can protect their rights and fight for justice.

Protect rights by reviewing contracts before signing

Before a promotion, American Apparel was notorious for having employees sign off on an arbitration agreement. The agreement required the employee to refrain from speaking ill of Mr. Charney and required all legal matters move forward through arbitration. Although this may seem reasonable, it is important to understand the extent of this requirement. This can be used as a tool to essentially take away a victim’s voice, removing their ability to take a matter like sexual harassment before a judge and jury.

Ideally, workers will have legal counsel review these contracts and discuss potential implications before moving forward. However, it is important to note that victims still have options even if they sign these agreements.

Resolution when bound by arbitration

Victims of sexual harassment have several options for resolution, even if bound by arbitration agreements. These can include:

  • Litigation: In certain cases, the courts will throw out these agreements and allow a case to move forward in court. It is important to review the protocol and requirements to see if your case could qualify.
  • Arbitration: While often mandatory, victims can still present their case and seek justice.
  • Negotiation and settlement: Parties may reach a settlement agreement outside of formal proceedings.

“Trainwreck: The Cult Of American Apparel” sheds light on the complex issues surrounding workplace harassment and the legal battles that ensue. Irene Morales’ brave stance in sharing her story and fighting for justice serves as a reminder of the importance of understanding one’s rights and the potential impact of arbitration agreements.