New York bill expands worker protections for fashion, entertainment industry | McDermott Will & Emery

In response to calls to reform the fashion industry’s labor practices, the New York State Legislature recently passed the New York Fashion Workers Act—an amendment to the state’s labor laws—that would greatly expand labor protections for those in the fashion and entertainment industry.

The bill (SB8638/A09762) made it out of the Senate Labor Committee, but failed to get a final floor vote in the final days of the legislative session. Below are some of the most important amendments included in the Act:

1. Management companies owe a formal fiduciary duty to any model or invention that the management company manages, acquires or attempts to manage.
2. Commissions made by model and creative management companies are limited to 20% of a model’s or creative’s fee.
3. Models, photographers and other creative talent must be paid no later than 45 days after completion of work. Additionally, funds should be held in a client trust account for safety.
4. Management companies must notify former talents in writing if they collect royalties from talents they do not represent.
5. Management companies must register with the New York State Department of Labor (the Department) and post a $50,000 surety bond with the Department.
6. In the event of a dispute with the client regarding late or non-payment for services, the management company will pay the fee and expect payment from the client when the dispute is resolved.

In the year While the bill hasn’t been signed into law in the 2022 session, it’s unlikely the proposed changes are going away entirely. Employers in the entertainment and fashion industry should prepare for this bill reform next year. McDermott Will and Emery continue to pursue these ideas.