IMPORTANT NOTE: This guide is not to be considered legal or compliance advice. Every Agency should seek their own independent legal/tax/compliance counsel to ensure full compliance.
Fashion Workers Act summary
New York Senate Bill S2477A, known as the Fashion Workers Act, introduces significant compliance requirements for model management companies and creative agencies operating within New York State. The legislation aims to enhance labor protections for fashion industry workers, particularly models, by mandating registration, enforcing fiduciary responsibilities, and establishing clear standards for contracts, payments, and workplace conduct.
Agencies Affected
Entities impacted by S2477A include:
Model/Talent Management Companies: Agencies that represent models and/or talent for employment opportunities.
Creative Management Companies: Firms representing creatives such as makeup artists, stylists, photographers and influencers.
Fashion Industry Clients: Brands, designers, and other clients engaging models through these agencies.
Key Compliance Requirements
Mandatory Registration: All model and creative management companies must register with the New York State Department of Labor. This process includes providing detailed information about business practices and agreeing to adhere to the stipulated regulations.
Fiduciary Duty: Agencies are required to act in the best interests of the models they represent, ensuring transparency and fairness in all dealings.
Timely Payments: Models must be compensated within 45 days of completing a job, promoting financial stability and trust within the industry.
Contract Transparency: Agencies must provide models with copies of contracts and agreements at least 24 hours before the commencement of services, ensuring informed consent and clarity.
Itemized Deductions: Any deductions from a model's compensation must be clearly itemized, with documentation provided quarterly to maintain transparency.
Disclosure of Conflicts: Agencies must disclose any financial relationships or conflicts of interest with clients to prevent unethical practices.
Zero-Tolerance Policy: A strict policy against harassment and abuse must be established and communicated, fostering a safe working environment.
Nudity and Explicit Content Compliance: Agencies must ensure that any work involving nudity or sexually explicit material complies with existing civil rights laws, protecting the rights and dignity of models.
Enforcement and Penalties
Non-compliance with S2477A can result in penalties, including fines and potential revocation of registration. Agencies are subject to oversight by the New York State Department of Labor, which will handle complaints and enforce the provisions of the law.
Implementation Timeline
The Fashion Workers Act was signed into law on December 21, 2024, and is set to take effect on June 19, 2025. Agencies are advised to review and adjust their practices accordingly to ensure full compliance by the effective date.
What registration steps are required for agencies?
Under New York's Fashion Workers Act (Senate Bill S2477A), model management companies operating in the state are mandated to register with the New York Department of Labor (NYDOL). This registration process is designed to enhance transparency and accountability within the fashion industry.
✅ Registration Steps for Model Management Companies
Determine Applicability:
Entities that manage models for entertainment or performances, arrange employment for them for a fee, or provide vocational guidance to them for a fee are considered model management companies and must register.
Prepare Required Information:
Gather necessary details about your business operations, including company structure, services offered, and any affiliations with clients or other agencies.
Complete the Registration Form:
Obtain and fill out the registration form provided by the NYDOL. Ensure all information is accurate and complete.
Submit Registration Fee:
Pay the applicable registration fee based on company size:
Companies with five or fewer employees: please check NYDOL website for current fees
Companies with more than five employees: please check NYDOL website for current fees
Registration must be renewed every two years.
Display Certificate of Registration:
Upon approval, the NYDOL will issue a certificate of registration. This certificate must be:
Physically displayed in the company's office
Digitally posted on the company's website
Included in any advertisements, including social media profiles, and in contracts with models or clients
📅 Compliance Timeline
The Fashion Workers Act was signed into law on December 21, 2024, and is set to take effect on June 19, 2025. Model management companies must complete the registration process within one year of the effective date, i.e., by June 19, 2026.
📌 Additional Compliance Obligations
Beyond registration, model management companies are required to:
Act in the best interests of the models they represent, ensuring transparency and fairness in all dealings.
Conduct due diligence to ensure that employment opportunities do not pose unreasonable risks to models.
Provide models with copies of contracts and agreements at least 24 hours before services commence.
Clearly itemize any deductions from a model's compensation and provide documentation quarterly.
Disclose any financial relationships or conflicts of interest with clients.
Establish and communicate a zero-tolerance policy against harassment and abuse.
Ensure that any work involving nudity or sexually explicit material complies with existing civil rights laws.
What documentation is needed for registration?
📄 Required Documentation for Registration
Business Information:
All names under which the company conducts business.
Principal business address and addresses of any New York offices.
Taxpayer Identification Number (TIN) or Employer Identification Number (EIN).
A list of all jurisdictions and names under which the company has operated in the past five years.
Ownership Details:
Information regarding ownership if the company is privately held or publicly traded.
Surety Bond:
Companies with more than five employees must deposit a $50,000 surety bond with the NYDOL.
Registration Fee:
please check NYDOL website for current fees for companies with five or fewer employees.
please check NYDOL website for current fees for companies with more than five employees.
Contract Templates:
Submission of standard contract forms to be used with models, subject to NYDOL approval.
Consent for Digital Replicas:
Written consent forms detailing the scope, purpose, compensation, and duration for the creation or use of a model's digital replica.
For detailed guidance and access to the registration forms, please visit the New York Department of Labor's official website.
Are there exceptions for small agencies?
Under New York's Fashion Workers Act (Senate Bill S2477A), model management companies are generally required to register with the New York Department of Labor (NYDOL). However, there is a limited exemption for certain companies that meet specific criteria.
🚫 Exemptions from Registration
A model management company may be exempt from the registration requirements if it satisfies all of the following conditions:
Domiciled Outside New York State: The company must be legally based outside of New York.
Equivalent or Greater Regulation in Another State: The company must be licensed or registered as a model management company in another state that has regulatory requirements equal to or more stringent than those outlined in New York's Fashion Workers Act.
No Physical Presence or Client Solicitation in New York: The company must not maintain an office in New York State or solicit clients located or domiciled within the state.
If a company meets all three criteria, it can submit a properly executed request for exemption using the form provided by the NYDOL.
⚠️ Important Considerations
Limited Applicability: This exemption is narrowly tailored and primarily applies to companies with no operational or client-based ties to New York.
Unlikely for Small In-State Agencies: Small agencies operating within New York, even those with five or fewer employees, are not exempt and must comply with the registration requirements.
Registration Fees:
Agencies with five or fewer employees:please check NYDOL website for current fees
Agencies with more than five employees: please check NYDOL website for current fees
Registration must be renewed every two years.
Surety Bond Requirement: Agencies with more than five employees are also required to deposit a please check NYDOL website for current amount for surety bond with the NYDOL.