American Apparel Makes Employees Sign $1 Million Confidentiality Agreements

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Photo: Johannes Kroemer/Getty Images

Though with less heavy petting than Days of Our Lives, the Gawker vs. American Apparel soap opera continues! The website obtained what they say is — and what sure looks like — a copy of the $1 million confidentiality agreement all American Apparel employees must reportedly sign. The one-page document explains in detail the information employees must not make public, also explaining that if they are approached by a reporter, they must not comment and must alert AA immediately. The agreement also contains a clause that requires employees to legally acknowledge how famous Dov Charney is.


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.

Gawker also defended itself against Charney's claims that e-mails the site published recently detailing dress codes and grooming requirements were altered by its reporters. Gawker's editor spoke to Charney at length, but as with us, he refused to go on the record. In our case, Charney said he wouldn't go on the record because we woke him up at 7 a.m. It's unclear if Gawker enjoyed the same thrill of talking to the CEO while he was in his bed, but Charney did go on the record for other outlets.

American Apparel Confidential: A Million-Dollar Penalty for Whistleblowers [Gawker]