Sydney Sweeney’s American Eagle campaign was meant to sell jeans. Instead, it sold a lesson in employment law

Billboards of actress Sydney Sweeney is seen outside of an American Eagle store on August 01, 2025 in New York City. (Credit: Michael M. Santiago/Getty Images)

In contracts, whether you’re a celebrity or a salaried employee, your reputation is on loan, and the logo on your paycheque has the final say over how it is used.

Sydney Sweeney probably expected to sell denim when she signed on to promote American Eagle Outfitters Inc., not ignite a culture war. But her “great jeans” campaign is more than a viral moment. It’s a masterclass in how contracts, rather than charisma, dictate control in the workplace and how quickly that control can turn against you.

The beautiful, white actress agreed to appear in a campaign with the cheeky slogan, “Sydney Sweeney has great jeans.” In today’s cultural climate, it was almost guaranteed to cause offence. It did. Social media declared it problematic, Tesla Inc. mocked it, Donald Trump embraced it and American Eagle’s share price soared.

That spike in stock may not be a win for Sweeney, but it’s a reminder that once you sign an endorsement deal or an employment contract, the brand interests — not yours — dominate.

Celebrity endorsements and employment contracts have a common thread: you give up autonomy for pay. The employer’s contract dictates what you do, how you present yourself and sometimes even what you can say on your own time.

In Sweeney’s case, if she approved the creative, she owns the fallout. If she didn’t, and her contract gave American Eagle creative control, she still owns the fallout.

This is no different than an employee being disciplined for something they posted under the company’s name. Your image, like your work product, subject to a contract to the contrary, becomes the employer’s property. You can disagree with the message, but you have no legal ground to stand on unless your contract gives you a veto.

Of course, it could be said that American Eagle made the decisions that arguably damaged Sweeney. Contracts with high-profile actors and C-suite executives almost always include moral clauses, not to protect the talent, but to protect the company.

If the ad damages the company’s reputation, it can end the relationship. If the ad damages the employee, they are on their own, unless they negotiated otherwise. Few employees have the leverage to reverse that.

The lesson for ordinary employees is identical. In Canadian workplaces, if your actions — online or off — cause reputational harm to your employer, you can be disciplined or fired, even if you thought you were “off the clock.”

Employees are often shocked to learn that free speech is not a shield in the private sector. Your contract, workplace policies and the law of just cause determine your fate, not the Charter of Rights, which is totally irrelevant in employment law.

Story Continues

The Sweeney cultural storm is similarly irrelevant to the law. The public debate over whether the “great jeans” tagline is sexist, humorous or politically charged is, legally speaking, beside the point. What matters is what the contract said and whether the brand can show reputational impact. Nothing more.

The takeaway for anyone — whether selling denim or software — is clear: you rent out your reputation when you align yourself with an employer or a brand. The rent is paid in cash, but the eviction notice could come without warning.

The strike threat from Air Canada's flight attendants is a moonshot Lessons from the Hockey Canada sexual-assault trial

In the end, Sweeney’s saga isn’t about denim, politics or celebrity. It’s a reminder that in employment law, you are never bigger than the logo on your paycheque. The moment you forget that, the seam starts to rip.

Here are three legal lessons from this case:

Signing an employment contract means surrendering control: Whether you’re a Hollywood star or a junior gopher, once you sign, the employer or brand has the right to decide how your image, work and message are used. Moral clauses work one way: They’re designed to let the company walk if you cause reputational harm, not to protect you if the company does. Reputation is rented, not owned: In both employment and endorsement contracts, your good name is on loan. The rent is paid in cash, but the landlord can evict without warning.

Howard Levitt is senior partner of Levitt LLP, employment and labour lawyers with offices in Ontario, Alberta and British Columbia. He practices employment law in eight provinces and is the author of six books, including the Law of Dismissal in Canada.