10 Jan Inside the New York Fashion Workers Act
The New York Fashion Workers Act (N.Y. Labor Law, Art. 36) (sometimes the “Act”), which takes effect on June 19, 2025, imposes new obligations upon model management companies and clients who receive modeling services. Here is a summary of the key provisions of the law.
The New York Fashion Workers Act Registration and Financial Requirements
Under the Act, a model management company shall not engage in business in New York or enter into any arrangement with a client or model for the purpose of providing model management company services in New York unless the model management company is registered. (Section 1032).
A model management company operating within New York must complete its initial registration within one year of its effective date (i.e., June 19, 2025), and the registration shall be valid for two years. (Section 1033 (3), (7)). The registration requires comprehensive documentation, including company identification details and ownership information. (Section 1033 (2)(a)-(e)). In addition to paying a registration fee, a model management company or model management group with more than five employees that either work from a location in New York or perform work relating to models in New York must obtain a $50,000 surety bond. (Section 1033 (4)).
The Department of Labor will issue a Certificate of Registration to each registered model management company and it will also maintain a list of model management companies registered under the Act. (Section 1033 (8)).
Duties Imposed upon Model Management Companies by the New York Fashion Workers Act
The Act establishes a fiduciary duty on the part of the model management company towards the models that it represents. (Section 1034 (1)). The model management company must act in good faith, with the utmost honesty and integrity, in the best interests of the models. (Section 1034 (1)). This fiduciary duty encompasses all aspects of the model management company’s representation, including, but not limited to, negotiations, contracts, financial management, and the protection of the models’ legal and financial rights. (Section 1034 (1)).
Further, each model management company must conduct due diligence to ensure that any employment or engagement procured through the model management company does not pose an unreasonable risk of danger to the model including, but not limited to, failing to establish and communicate a zero tolerance policy for abuse, harassment, or any other form of inappropriate behavior. (Section 1034 (2)).
Moreover, the model management company must ensure that any employment or engagement requiring nudity or other sexually explicit material shall comply with the requirements of subdivision three of Civil Rights Law § 52-C (Private right of action for unlawful dissemination or publication of a sexually explicit depiction of an individual). (Section 1034 (4)).
Model management companies must also use best efforts to procure employment or engagements for the models signed to the model management company. (Section 1034 (3)). The management companies must provide models with written physical or digital copies of the final contracts negotiated with clients and any deal memos memorializing such agreements at least twenty-four hours prior to commence of the model’s services pertaining to each agreement and in the language requested by the model. (Section 1034 (5)).
Furthermore, the model management company must obtain clear written consent for the creation or use of a model’s digital replica, detailing the scope, purpose, rate of pay, and duration of such use. This consent must be obtained separately from the representation agreement. (Section 1034 (11)).
The model management company must clearly specify all items that may be initially paid for by the model management company but will ultimately be deducted from the compensation due to the model at the time of payment or settlement, together with an itemized recitation as to how each item is to be computed. (Section 1034 (6)). On a quarterly basis, a model shall also be given copies of any and all documentation held by or available to the model management company necessary to determine the validity of each charge. (Section 1034 (6)).
Additionally, the model management company must disclose any financial relationship, contractual or otherwise, that may exist between the model management company and the client, other than the agreement relating specifically to modeling services. (Section 1034 (7)).
The model management company must also notify former models in writing if the model management company collects any royalty owing to a model that the management company no longer represents. (Section 1034 (8)).
The New York Fashion Workers Act Prohibitions on Model Management Companies
Under the Act, a model management company cannot impose a commission fee greater than twenty percent of the model’s payment or compensation. (Section 1035 (7)).
The Act also prohibits model management companies from requiring models to sign a management agreement containing a term greater than three years, or that contains a clause which renews the agreement without the model’s affirmative written consent. (Section 1035 (5),(6)).
Moreover, model management companies cannot require or collect any fee or deposit from a model as a condition for entering into a contract or agreement (Section 1035 (1)). Additionally, it must provide a written disclosure of the rate charged to the model before procuring accommodations for a model. (Section 1035 (2)). Further, unauthorized deductions from a model’s payment are prohibited, including, but not limited to, fees for websites, accommodations, delivery, or interest on the payment of earnings, except for the agreed-upon commission or items advanced under Section 1034 (6). (Section 1035 (3)). Furthermore, model management companies are barred from advancing travel or visa-related costs without obtaining the model’s informed written consent. (Section 1035 (4)).
Additionally, the model management company must not engage in discrimination or harassment of any kind against a model because of any protected status covered under paragraph (a) of subdivision one of Executive Law § 296 (Unlawful discriminatory practices). (Section 1035 (9)). Further, the Act shields models from retaliatory actions for filing complaints under the Act or who decline or discontinue participation in any casting or booking based upon the model’s reasonable good faith concerns about an actual or potential violation of the Act. (Section 1035 (8)).
The Act also requires that model management companies obtain separate and clear written consent from the model to create, alter, or manipulate a model’s digital replica using artificial intelligence. (Section 1035 (10)).
The New York Fashion Workers Act Power of Attorney Regulation
The Act also requires that a power of attorney agreement between a model management company and model be presented to the model as optional and not as a necessary condition of entering into an agreement between the model and management company. (Section 1036 (1)(a), (b)).
Moreover, the power of attorney shall only extend to matters directly related to the provision of modeling services with the exclusion of the use of the model’s digital replica, and is subject to termination by the model at any time and for any reason. (Section 1036 (1)(c), (d)).
Any power of attorney agreement that violates this section of the Act is void as a matter of public policy. (Section 1036 (2)).
Duties of Clients under the New York Fashion Workers Act
The Act also requires clients to adhere to specific obligations when engaging models. They are required to compensate models at least 50% above the contracted hourly rate for work exceeding eight hours in a 24-hour period and provide at least a 30-minute meal break for such extended work hours. (Section 1037 (1),(2)).
Clients must also ensure that any offered work does not pose unreasonable risks to models, including the absence of a zero-tolerance policy for abuse or harassment. (Section 1037 (3)). For work involving nudity or sexually explicit material, clients must comply with Civil Rights Law § 52-C. (Section 1037 (4)).
Additionally, models must be allowed to be accompanied by a representative during engagements, and clients must provide adequate liability insurance to safeguard the models’ health and safety. (Section 1037 (5),(6)).
Moreover, prior written consent must be obtained for the creation or use of a model’s digital replica, detailing its scope, purpose, rate of pay, and duration. (Section 1037 (7)).
Violations of the New York Fashion Workers Act
Models aggrieved by violations of the Act may file complaints with the labor commissioner within six years of the incident. (Section 1038 (7)).
Models may also file lawsuits to enforce the provisions of Sections 1034 and 1035 of the Act. A model management company that violates either Section 1034 or 1035 are liable to the model for actual damages, reasonable attorney fees and costs, and—-unless the employer proves a good faith basis to believe that its actions were in compliance with the law—-an additional amount as liquidated damages of no more than 100% of the total amount of actual damages, except liquidated damages may be up to 300% of actual damages if the actions were willful. (Section 1038 (8)).
Next Steps for Compliance with the New York Fashion Workers Act:
To ensure full compliance with the New York Fashion Workers Act, model management companies must undertake a comprehensive approach to align their operations with the new legal requirements including:
Registration:
- Timely prepare and submit all required documentation to the New York State Department of Labor within the mandated one-year window.
- Include the required company identification details, ownership information, and a $50,000 surety bond if applicable.
Policy Updates:
- Implement or revise a zero-tolerance policy for harassment and abuse to ensure the safety and protection of models.
- Establish financial transparency by creating clear, itemized payment practices that outline all deductions and charges.
Digital Replica Consent:
- Develop explicit procedures for obtaining and documenting written consent for the creation or use of a model’s digital replica.
- Ensure compliance with regulations governing artificial intelligence and digital technology use.
Contract Review:
- Conduct a comprehensive review of all client and model contracts to ensure full compliance with the Act’s requirements.
- Verify compliance with stipulations such as contract term limits, commission caps, and mandatory disclosures.
Client Coordination:
- Work closely with clients to ensure they meet their obligations under the law.
- Address requirements for fair compensation, health and safety safeguards, and adherence to zero-tolerance harassment policies.
Employee Education:
- Proactively educate all employees about the new requirements well in advance of the Act’s effective date.
- Provide thorough training and clear communication on changes to ensure understanding and adherence to updated practices.
- Address operational areas comprehensively to mitigate risks and maintain compliance.
How to Contact Us
It is crucial for New York model management companies and others impacted by the recently enacted New York Fashion Workers Act to ensure compliance with its requirements. The Act imposes strict obligations regarding registration, contracts, and the management of models, with significant penalties and damages for non-compliance. Reviewing your policies and practices together with preparing to register if needed, can help you avoid legal risks and ensure your business operates within the bounds of the Act. Contact the Blum Law Firm by calling 212-920-5858 or 310-620-7172 should you have any questions.