New York Governor Kathy Hochul signed the Fashion Workers Act into effect on June 19, 2025. The Fashion Workers Act requires model management companies to register their businesses and imposes several duties and responsibilities on both model management companies and clients. In connection with my work with models in New York.
A variation of this law (A05631/S09832) has been proposed by the New York State Legislature beginning in 2022.
Who is covered by this law?
“Model Management Company” means: “(a) engaged in the business of managing models who participate in entertainment, exhibitions, or performances; (b) procuring or attempting to procure the employment or contracting of models for compensation; or (c) provide vocational guidance or counseling services to the Model in New York for a fee.
Additionally, a “model” means “a person who performs modeling services for a client and/or model management company, or provides showroom, parts, or fit modeling services, regardless of the individual’s status as an independent contractor or employee.” defined as “the person providing the service”. ”
“Client” is further defined as “a retailer, manufacturer, clothing designer, advertising agency, photographer, publisher, or any other person or entity that receives Model services directly or through an intermediary from the Model.”
We note that covered entities do not include “creative” management companies as in previous bills. Still, the legislation could impact any business that employs models using a fee-based structure, as well as retailers that hire models directly for photo shoots or other advertising campaigns.
Additionally, “Modeling Services” includes the use of “Digital Replicas.” A digital replica is defined as “a computer-generated or artificial intelligence-enhanced feature that substantially replicates or replaces the appearance or performance of a model, including but not limited to face, body, voice, etc.” is defined as “an expression”. ” This is important content that was not present in previous versions of the law and demonstrates Congress’s continued focus on the impact of artificial intelligence on jobs.
Obligations and Prohibitions: Model Management Company
The Act imposes registration requirements directing model management companies to register within one year of the Act’s effective date (i.e., June 19, 2026). Without an exemption, model management companies with five or fewer employees must pay a $500 registration fee. Model management companies with more than five employees must pay a $700 registration fee. Registration must be renewed every two years.
Very limited exemptions apply to model management companies. (1) is based outside the state; (2) is registered in another state with requirements equivalent to or greater than the law; and (3) does not have an office in or solicit clients in New York. However, because this law is the first of its kind to create registry requirements, it is anticipated that no model management company will be able to meet its strict parameters under existing circumstances.
The law further specifies the duties and responsibilities that model management companies have towards their models.
Fiduciary Responsibility: Model management companies have a “fiduciary responsibility for the models they represent.” This obligation includes all aspects of the company’s representation, including “negotiations, contracts, financial management, and the protection of the legal and economic rights of the models.” Due Diligence: Model management companies must “conduct due diligence” to ensure that their employment or engagement “does not pose an unreasonable risk of endangering the model.” Best Efforts: Model management companies must use their best efforts to retain the models they contract with. Explicit Content: Model management companies ensure that employment requiring nudity or sexually explicit material complies with the requirements set forth in Section 52(c)(3) of the Civil Rights Act. Must be. This requirement requires that an individual knowingly and knowingly sign a consent form that includes: Requested sexually explicit content may also be removed. Final Contract: Model management companies must provide models with a copy of the “definitive contract” that the company has negotiated with the customer and a “transaction memorandum commemorating such contract” at least 24 hours before the model is placed in service. there is. Deductions: Model management companies must clearly specify items that are initially paid by the company but will ultimately be deducted from the model’s compensation. Financial Disclosure: Model management companies must “disclose any financial relationships” that may exist between the model management company and its clients. Royalties: Model management companies must notify former models if the company collects royalties for models who no longer represent them. Certificate of Registration: Model management companies must display a “physical copy” of the company’s registration certificate in their offices, post a digital copy on the company’s website, and include “(the company’s) registration number” in all advertisements, including social media. ‘ must be included. Media profile of (company), intended to solicit models. . . And also in any contracts with models or clients. ” Digital Replicas: Model management companies must “obtain clear written consent for the creation or use of digital replicas of models, detailing the scope, purpose, fee, and duration of such use.” This consent must be obtained “separately” from the agency agreement.
The law also outlines a number of prohibitions imposed on model management companies, including:
Fees: Model management companies cannot “require or collect fees or deposits from models” at the time of signing or as a condition of entering into a contract. Accommodations: A model’s management company cannot procure accommodations paid for by a model without “written disclosure of the fees to be charged” prior to the model’s stay. Deductions: Model Management Company may not deduct or offset any fees or expenses other than agreed upon commissions and prepaid items from Model payments. Travel/Visa Costs: Model Management Companies cannot pre-pay travel or visa-related costs without the “written consent” of the Model. Contract Term and Renewals: Model Management Companies may not require models to sign a Model Management Company Agreement that: Includes periods exceeding 3 years. or update without the affirmative written consent of the Model. Fees: Model management companies cannot charge fees that exceed 20% of model fees. Retaliation, Discrimination, and Harassment: Model management companies may not retaliate against models who file or attempt to file a complaint under the Act, and are protected from discriminating or harassing them. cannot be done. Digital Replicas: Model management companies may not “use artificial intelligence to create, modify, or manipulate digital replicas of models without the model’s express, conspicuous, and separate written consent.”
The law also provides that the agency agreement between a model management company and a model is voluntary and “may be terminated by the model at any time and for any reason.”
Customer obligations
The law further enumerates the obligations of clients, i.e. individuals or entities who receive modeling services directly from the model or through an intermediary.
Overtime Pay: The Client will compensate the Model at an hourly rate that is at least 50% higher than the contracted rate for any hours in excess of 8 hours in a 24-hour period. Meal Breaks: Client will provide a 30-minute meal break for employment exceeding 8 hours in any 24-hour period. Preventing Unreasonable Risk: Clients will only offer employment to models who “do not pose an unreasonable risk.” Explicit Content: Client shall ensure that any employment requiring nudity or sexually explicit material complies with the requirements set forth in Section 52(c)(3) of the Civil Rights Act . Agent: Client allows model to be accompanied by an “agent, manager, escort, or other representative.” Liability Insurance: Customer shall “provide appropriate levels of liability insurance.” Digital Replicas: Client “shall obtain clear and conspicuous prior written consent for the creation or use of digital replicas of the Model, detailing the scope, purpose, fees, and duration of such use.” .
Penalties for violations
Enforcement of this law is carried out by the New York Department of Labor (NYDOL). The Secretary may impose civil penalties on model management companies that violate the Act of up to $3,000 for a first violation and up to $5,000 for subsequent violations.
In addition, models may assert their private right of action by filing a complaint with the Commissioner within six years of the alleged conduct. A model management company that violates the Act shall be liable for actual damages, reasonable attorneys’ fees and expenses, and liquidated damages up to 100% of the total amount of actual damages, unless caused by intent, and then up to 300% of the total amount of actual damages. I will bear the burden. .
next step
Given the significant compliance burden, we hope to receive further guidance from the NYDOL before the law takes effect on June 19, 2025, including what constitutes a “violation” and the forms needed to meet registration requirements. I look forward to it.
In the meantime, covered companies should review their existing policies and practices and conduct a risk assessment to determine whether they are meeting the necessary obligations and responsibilities, particularly those related to pay and overtime. There is.
how we can help
Morgan Lewis helps luxury goods and fashion clients understand how the New York State Fashion Worker Law impacts current and future business practices. Morgan Lewis has an extensive background advising retailers on labor and employment compliance matters, including wage payment, discrimination and retaliation matters.
Law clerk Nina S. Leeds contributed to this LawFlash.
