Weinstein Tax is a penalty paid by the sexual abuser after being proved guilty of sexual allegations within the working premises, in a court of law. The tax was passed in response to the Weinstein Effect which in turn gave rise to the globally trending #MeToo Movement.
The article deals with the payments related to the Weinstein Tax and further deepens into the Weinstein Effect and the Me Too Movement.
The main purpose of the Weinstein tax is to provide transparency in matters relating to sexual harassment in the workplace and to strongly discourage the act of providing secret money to the victims in order to silence the situation.
According to the Internal Revenue Code, the employer may deduct ordinary and some necessary expenses used up during the operation of a certain business or trade, which also included expenses used for settling internal employment problems.
Before the enactment of the Weinstein Tax, the sexual harassment claims were also merged in the above-mentioned expense deduction.
But as of 22nd December 2017, employers are strictly restricted from deducting any settlement expenses in concern to sexual harassment matters and abuse claims in case of nondisclosure term in the settlement agreement.
As per Section 13307,
1. No deduction shall be allowed under this chapter for –
2. any settlement or payment related to sexual harassment or sexual abuse if such settlement or payment is subject to a nondisclosure agreement, or
3. attorney’s fees related to such a settlement or payment
The Weinstein Tax has no definitions in relation to sexual harassment, sexual abuse, and a nondisclosure agreement.
Due to the lack of defining terms, it is quite unclear as to whether cases related to sexual harassment and sexual abuse also include claims for gender biases and bullying which would fall in the deduction limit.
The Weinstein Effect is a globally trending movement which accuses powerful men of their sexual misconducts in areas of work.