The New York State Fashion Workers Act (Article 26 of the N.Y. Labor Law), effective in June 2025, brings significant changes to the fashion industry, seeking to broaden worker protections by increasing regulation on model management agencies. No matter whether you are an agency or model, an experienced entertainment attorney can offer guidance about how this new law impacts you when it takes effect in June 2025.
Summary of the New York Fashion Workers Act: Who it benefits, and how
The Act is a framework to regulate model management companies and provide better conditions to models working in the fashion industry, who are typically hired as independent contractors and not guaranteed the same legal protections as employees are.
Key provisions include:
- Minimum Pay Requirements: Workers are guaranteed fair compensation, with set minimum rates for various types of work.
- Health & Safety Protections: The Act mandates that agencies provide a safe and healthy work environment, including access to mental health support.
- Contracts and Transparency: Agencies must present clear, written contracts outlining compensation, work hours, and other conditions before booking a worker. The Act includes some specific limitations, including that it prohibits a contractual term greater than three years and prohibits the contract from automatically renewing without affirmative consent from the model. Further, model management companies are prohibited from taking more than 20% of a commission fee.
- Working Hours and Conditions: The law limits the number of hours a worker can be asked to work per day and requires rest periods.
- Legal Representation: Workers now have the explicit right to seek legal counsel during contract negotiations and other work-related disputes.
- Anti-Discrimination Protections: Models are safeguarded from harassment or discrimination based on age, gender, race, size, and other protected characteristics.
- AI Limitations: The Act requires agencies to obtain prior written consent from models before using or creating a digital replica of their likeness (a significant, computer-generated or AI-enhanced representation of the person’s face, body, or voice).
Arguably, the biggest benefit for models and other creatives is that the Act places explicit fiduciary obligations on the agencies, requiring agencies to prioritize the interests of their models over their own.
What is a fiduciary obligation in this context?
A “fiduciary” is someone who has an obligation to act in the best interests of another person or entity. These duties can be established either by law (the Act, in this case), or by the nature of the relationship itself. These duties typically arise when one party must place their trust and reliance on another to exercise sound judgment on their behalf.
By creating fiduciary duties, the Act imposes a responsibility on entities (like agencies) and individuals (like specific agents) entrusted with critical decision-making power for a model, to always act in the models’ best interests. For example, models can be harmed by an agency’s hidden conflicts of interest, financial misrepresentations, or negligent conduct, and now, the Act provides a clear cause of action for models to hold their agencies accountable in the event of a breach to act in their best interests.
Violations of fiduciary duties will expose agencies to tort liability. Currently, a well-established body of case law defines fiduciary obligations in professions like law and financial advising. If courts apply similar standards to modeling agents and agencies, models could pursue more than just unpaid wages in the event of a breach—they might also be entitled to damages for emotional distress, reputational harm, and, in serious cases, potentially even punitive damages.
What do model management companies have to do to comply?
The Act defines a model management company as “Any individual or entity that is in the business of managing models, procuring employment or engagements for models, or provides counseling services to models.”
Once effective in June 2025, all model management companies must register with the New York Department of Labor by June 19, 2026. To register, these companies must submit their information, including addresses, tax identification numbers, and ownership details; post a $50,000 surety bond (if they have more than 5 employees), and; pay a registration fee (varies based on the company’s size). After the registration is complete, the model management company must post their certificate of registration in a conspicuous place within their physical office and on their website.
Model management companies may file a request for exemption, which may be granted only if all the following conditions are satisfied:
- The company submits a properly executed request for exemption;
- The company is domiciled outside of New York and is licensed or registered as a model management company in another state that has the same or greater requirements as the requirements under this Act; and
- The company does not maintain an office in New York or solicit clients located or domiciled within New York.
Conclusion
As the New York Fashion Workers Act brings a new era of rights and protections to the modeling industry, it’s crucial for both models and agencies to understand and implement these changes. If you’re a model or an agency seeking advice on how to comply with the new laws, reach out to a member of our team to provide the guidance necessary to navigate this evolving landscape.
Photo by Alisa Orlova on Unsplash