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A woman accused Michael Douglas of sexually inappropriate behavior Friday, alleging the veteran actor repeatedly harassed her when she worked at his production company in the 1980s.

“I think he just thought he was so powerful he thought he could do anything,” writer Susan Braudy told "Today" in her first on-camera interview about the alleged incidents. "He would repeat things that he said to Jack Nicholson, who he loved to talk to on the phone about such things as the 50 slang words for his private parts."

The Oscar-winning actor was at the height of his career, starring in movies like "Wall Street" and "Fatal Attraction," when he repeatedly used inappropriate sexual language, his then-employee said.

The behavior escalated until a meeting with Douglas at his New York apartment in 1989, according to Braudy.

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She said that Douglas "unbuckled his belt and put his hand inside his trousers."

Braudy added: “I could see what he was doing … and then he began to sort of began to fondle himself.”

The incident made her “very uncomfortable,” she said. “I knew things weren't supposed to be this way.”

Related: A growing list of men accused of sexual misconduct

Braudy, who has written for publications including The New York Times, Newsweek and The Atlantic, said she became “panicked” and “ran for the door.”

Braudy said she told several friends at the time but was afraid to speak out.

She didn't contact the police because she "didn't think he'd broken a law."

Michael Douglas Richard Shotwell / AP file

"I made sure that I was never ever ever alone with him again," Braudy added. "It became a very hostile work environment for me."

She also accused Douglas of "making so many comments about my body and how I would be in bed, that I began to wear layers of black clothing so nothing would stimulate him ... he started saying, 'why are you dressing so much like a pregnant nun? What is it with you?' And laughed and laughed."

Douglas declined NBC News’ request for comment, but told The Hollywood Reporter that the accusation is “an unfortunate and complete fabrication.”

Douglas also told Deadline earlier this month: “I can’t believe that someone would cause someone else pain like this. Maybe she is disgruntled that her career didn’t go the way she hoped and she is holding this grudge.”