Democratic presidential hopeful Michael Bloomberg has bowed to pressure to release former female employees from non-disclosure agreements (NDAs).
Michael Bloomberg says his company has found records of three NDAs that have been signed off in the last 30 years. Photo: AFP
He said his company was prepared to void three NDAs "with women to address complaints about comments they said I had made".
His Democratic White House rivals have been pounding away at him on the issue.
Critics of NDAs argue these legal gag orders on employees cover up workplace misconduct.
No more NDAs, Bloomberg says
He said in a campaign statement on Friday that his media company Bloomberg LP had trawled through its records over the past three decades or so and identified three NDAs.
"If any of them want to be released from their NDA so that they can talk about those allegations, they should contact the company and they'll be given a release," the statement said.
"I've done a lot of reflecting on this issue over the past few days and I've decided that for as long as I'm running the company, we won't offer confidentiality agreements to resolve claims of sexual harassment or misconduct going forward."
He added: "I recognise that NDAs, particularly when they are used in the context of sexual harassment and sexual assault, promote a culture of silence in the workplace and contribute to a culture of women not feeling safe or supported."
Bloomberg is one of eight contenders remaining in the race to become the Democratic party's presidential candidate who will take on President Donald Trump, a Republican, in November's election.
Warren leads charge on NDAs
During a live TV debate on Wednesday in Las Vegas, one rival, Massachusetts Senator Elizabeth Warren, criticised Bloomberg as "a billionaire who calls women 'fat broads' and 'horse-faced lesbians'".
She also challenged him to release female employees from the NDAs, but he declined.
Stepping up her attack a day later, Warren, a law professor, said she had even drafted a contract for Bloomberg to sign to release women who accuse him of misconduct from their NDAs.
"I used to teach contract law, and I thought I would make this easy," she told a CNN town hall event on Thursday in Las Vegas.
Democratic presidential hopeful Elizabeth Warren leads the charge in a debate in Las Vegas over how Michael Bloomberg, left, has offended women during his career. Leading contender Bernie Sanders is on the right. Photo: AFP
NDAs silence victims, critics say
NDAs started out as legal contracts to ensure employees did not leak trade secrets.
But the hush deals have come under intense scrutiny during the #MeToo movement against sexual assault as some companies have used NDAs in harassment settlements with female employees.
The nondisclosure provision prohibits signatories from revealing details, such as allegations of harassment, or else they could face legal consequences.
Critics say NDAs silence victims, protect wrongdoers and shield the companies involved from unfavourable publicity.
-BBC