The author and journalist came forward in an interview with NBC News's Kate Snow published on Friday (January 19).
Braudy said she went to work for Douglas in the late 1980s, when his career was riding high as the star of such blockbusters as "Romancing the Stone", "Fatal Attraction" and "Wall Street", for which he won an Academy Award for best actor in 1988.
Braudy kept written accounts and files, including a letter to the California Women's Law Center inquiring about sexual harassment in the workplace, about her experiences of Douglas' use of alleged sexually charged and demeaning language around her, which she claimed eventually escalated to him masturbating in her presence.
The woman at the centre of the allegations against actor Michael Douglas has finally spoken out, revealing the incident that prompted her to run crying from his apartment. However, during a meeting in 1989, when they were brainstorming an idea about creating an ET-like character, Braudy says her employer slid down the back of his chair and ended up on the floor.
"I could see what he was doing, and then he began to sort of fondle himself", Braudy said. Douglas, she alleges, ran after her to the elevator, saying "Hey, thank you, you're good". Braudy says that she was sacked 6 months later after dodging attempts by Douglas to sign a confidentiality agreement.
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Vehemently denying her claims, which he called "completely untrue" and a "complete lie", Douglas added at the time: "The part that hurt the worst is having to share something like this to your wife and your children".
The Oscar victor, 73, denied all of the claims when The Hollywood Reporter and Variety contacted him about the story before he was even aware of the exact details.
In the Deadline interview last week, Douglas came forward to discuss the claims before Braudy had made them.
Douglas denied the allegations through his lawyer in a statement to The Hollywood Reporter, calling Braudy's masturbation claim "an unfortunate and complete fabrication ... So I thought it stunk". At no time then did she express or display even the slightest feeling of discomfort working in our environment, or with me personally. The Oscar-winning actor also made inappropriate comments about how Braudy dressed, describing her style as "a pregnant nun".
"I pride myself on my reputation in this business, not to mention the long history of my father and everything else", Douglas said. "Suggesting so does a true disservice to those who have actually endured sexual harassment and intimidation". I got a message from my attorney that The Hollywood Reporter wanted to do a story about an employee that worked for me approximately 32 years ago. "It has caused tremendous stress to me for something I believe I have nothing to regret or feel responsible for".