Michael Douglas has been accused of harassment more than a week after he issued a pre-emptive denial of the claims.
His former employee, author and journalist Susan Braudy, said the actor’s alleged treatment left her feeling “humiliated”.
Susan Braudy’ claims include that he performed an act in front of her.
Michael Douglas responded by saying: “This is a complete lie, fabrication, no truth in it whatsoever.”
The actor’s statement came 10 days before Susan Braudy’s allegations were published by The Hollywood Reporter.
Michael Douglas explained he “felt the need to get ahead” of the situation and share his concerns about the “nightmare” scenario.
Susan Braudy worked for Michael Douglas’s company Stonebridge Productions in the late 1980s.
She claims he used inappropriate language in front of her, including openly discussing extra-marital affairs, while she was running the company’s New York office.
Susan Braudy also alleges that Michael Douglas commented about her body, which made her then wear loose, dark clothing.
“I realized he thought he could do anything he wanted because he was so much more powerful than I was,” she said, adding that she ran home and vowed to never be alone with him again.
Susan Braudy finished working for the actor in 1989.
Michael Douglas, who originally spoke to Deadline, said: “I pride myself on my reputation in this business, not to mention the long history of my father and everything else.
“I don’t have skeletons in my closet, or anyone else who’s coming out or saying this. I’m bewildered why, after 32 years, this is coming out, now.”
The actor also claimed there is no evidence against him and he feared that such accusations could set back the #MeToo movement that has grown in the wake of the Hollywood harassment scandal.
Michael Douglas said: “Being accused, without a chance [to defend yourself] in court. To not even really have the information in front of you, to be able to argue or defend yourself.
“There is no due process, no chance of seeing evidence in front of me from my accuser. It worries me.”
Susan Braudy told The Hollywood Reporter she was not surprised by the way Michael Douglas had issued his denial.
She claimed the manner in which he did so was “part of the problem, as is his pretext of victimization”.
Susan Braudy added: “These are some reasons why so many women don’t come forward with their stories – Lord knows it’s taken 30 years and a movement for me to gather my courage.”