With the passage of the New York State Fashion Workers Act, New York is set to regulate the working conditions of fashion industry professionals and the conduct of employers in the fashion, entertainment, and retail industries that employ them or engage their services.

Overview of the New York State Fashion Workers Act

The New York State Fashion Workers Act (N.Y. Labor Law, Art. 36, the “Act”) amends the New York Labor Law and creates a new statutory scheme for the regulation of model management companies and their clients. In addition to registration requirements, the Act creates duties and obligations relating to contracting requirements, wage-and-hour protections, the use of artificial intelligence, and more.

Key provisions of the Act include:

• Mandatory registration for model management companies (MMCs) operating in New York (Section 1032);
• Clear duties and prohibitions for MMCs. (Sections 1034 and 1035).
• Specific obligations for clients engaging models through MMCs (Section 1037); and
• Stricter guidelines for contracts, payment practices, and workplace safety.

Key Definitions and Expansions Under the Act

The Act introduces critical definitions for terms not previously covered in the Labor Law, including “Model,” “Modeling Services,” “Model Management Company,” “Client,” and “Digital Replica” (Section 1031). These definitions clarify the scope of the law and the roles it seeks to regulate.

• Client: A broad category that encompasses retail stores, designers, manufacturers, photographers, publishing companies, or any other person or entity that receives modeling services from a model, directly or through intermediaries. (Section 1031(1)).

• Model: An individual, regardless of the individual’s status as an independent contractor or employee, who performs modeling services for a client and/or model management company or who provides showroom, parts, or fit modeling services. (Section 1031(2)).

• Model Management Company: Any individual or entity that is in the business of managing models, procuring employment or engagements for models, or provides counseling services to models. It expressly excludes entities that are licensed as employment agencies under Article 11 of the General Business Law. (Section 1031(3)).

• Modeling Services: Any appearance by a model in photographic sessions or the engagement of a model in live runway, live, filmed, or taped performances, including on social media platforms, requiring the model to pose, provide an example or standard of artistic expression or to be a representation to show the construction or appearance of some thing or place for purposes of display or advertising, including the provisions of castings, fittings, photoshoots, showroom, parts or fit modeling services, and the use of digital replicas. (Section 1031(4)).

• Digital Replica: Computer-generated or AI-enhanced representations of a model’s likeness, requiring written consent for creation or use. (Section 1031(7)).

Registration Requirements for Model Management Companies

Under Section 1032 of the Act, all MMCs must register with the New York Department of Labor. The registration process, set forth in Section 1033, includes:

• Submitting business information, including addresses, tax identification numbers, and ownership details. (Section 1033(2)).
• Posting a $50,000 surety bond for companies with more than five employees. (Section 1033(4)).
• Paying a registration fee based on company size ($500–$700). (Section 1033(5)).

Exemptions apply to out-of-state companies that meet equivalent regulatory standards and do not maintain offices or solicit clients in New York. (Section 1033(6)(c)).

It is unclear whether any other state’s regulations meet this standard. Relative to comparable statutes in other states, the Act is more specifically tailored to modeling services. The California Talent Agency Act regulates talent agencies, requiring licensing, approved contracts, and prohibiting upfront fees, with oversight by the state labor commissioner. Similarly, the Florida Talent Agency Act mandates licensing, transparent contracts, and fee restrictions, enforced by the Department of Business and Professional Regulation. Less detailed than California’s or Florida’s regulations, Texas’s Talent Agency Law requires agency licensing under the Texas Workforce Commission and enforces general fair practice rules.

Duties and Prohibitions Applicable to MMCs and Clients

New York’s Act introduces modern protections and a private right of action, setting stricter industry-specific standards. Although the Act specifies various duties and prohibitions for clients and MMCs, it does not do so equally for both groups.

Section 1034(1)-(11) generally sets forth the following duties for MMCs, which include:

• Ensuring that the engagement opportunities an MMC provides its models pose no unreasonable risk of danger;
• Using best efforts to procure opportunities for models;
• Providing models with final agreements the MMC negotiated with clients at least 24 hours prior to the start of a model’s services;
• Specifying all items that may be initially paid for by the MMC but will ultimately be deducted from the model’s compensation;
• Disclosing any financial relationship(s) that may exist between the MMC and client;
• Notifying former models if the MMC collects royalties owed to a model the MMC no longer represents;
• Obtaining written consent for the creation or use of a model’s “digital replica,” as that term is defined in the Act.

Section 1037 lists specific duties for clients, some of which overlap with those applicable to MMCs. These duties include:

• Compensating models at time-and-a-half for opportunities exceeding eight hours in any 24-hour period;
• Providing at least one 30-minute meal break for any opportunity exceeding eight hours in any 24-hour period;
• Providing adequate levels of liability insurance to cover and safeguard the health and safety of models; and
• Obtaining written consent for the creation or use of a model’s digital replica.

Despite listing very specific duties for MMCs and clients, the Act only lists prohibitions for MMCs. Among other things, Section 1035(1)-(10) prohibits MMCs from:

• Requiring or collecting a fee or deposit from models when they enter into an agreement with the MMC;
• Procuring accommodations for which payment shall be provided or reimbursed by the model in any way without prior disclosure;
• Imposing fees aside from those specified in advance pursuant to Section 1034;
• Advancing the costs of travel without consent;
• Imposing a contract term of more than three years;
• Renewing the model’s agreement without affirmative written consent;
• Imposing commission fees greater than 20% of a model’s compensation;
• Retaliating against models who actually or attempt to file a complaint under the Act or decline/discontinue participation in an opportunity due to reasonable, good-faith concerns about an actual or potential violation of the Act;
• Discriminating or harassing models because of any protected status; and
• Creating, altering, or manipulating a model’s digital replica using AI without explicitly clear, separate, written consent.

Private Right of Action and Potential for Joint Employer Liability

The Act provides an express private right of action against MMCs, but not clients. Similarly, it sets forth procedures for administrative proceedings against MMCs, but not clients.

The Act provides for a private right of action, with a 6-year statute of limitations from the date of the alleged violation, for models who believe their rights have been infringed. Models have two avenues of recourse. Under section 1038(7), models may file a complaint with the Department of Labor against the “person or entity” for “a violation of this article[.]” Models also may proceed directly to court under section 1038(8), but only “to enforce the provisions of sections 1034 and 1035,” i.e., not to enforce the client duties set forth in Section 1037. Sections 1034 and 1035 cover MMCs, and the statute states MMCs that violate these sections may be liable for actual damages, reasonable attorneys’ fees and costs.

However, Section 1038(8) states: “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 in an amount of no more than one hundred percent of the total amount of actual damages[.]” (Emphasis added). By its reference to “employer,” the Act leaves open the possibility that alleged violations of may be actionable as against other persons or entities who exercise control over models in the course of modeling services. Accordingly, MMCs and clients should consult with counsel to evaluate and advise on potential compliance issues and joint-employer concerns ahead of the Act’s implementation.

This new law will take effect on June 19, 2025.