Dear Retail Clients and Friends,
This edition of Morgan Lewis Retail Did You Know? examines the pending New York Fashion Workers Act, which, if passed by the state legislature, would create new compliance requirements, including obligations related to licensing and pay, on model and creative management companies.
The bill (S8638/A09762) seeks to amend the New York Labor Law. It requires “model” and “creative” management companies to register with the state within one year of the bill’s effective date as well as pay a $50,000 surety bond, subject to some limited exceptions.
A “model” or “creative” management company is defined as any person or entity that “(a) is in the business of managing models [or creatives] participating in entertainments, exhibitions, or performances; (b) procures or attempts to procure, for a fee, employment or engagements [][for] models; or (c) renders vocational guidance or counselling services to models [or creatives] for a fee” in New York.
Construed broadly, this could have massive implications not only for traditional model or creative management companies using fee-based structures, but also for retailers who directly hire models and creatives for studio photoshoots and ad campaigns.
The bill specifically applies to models, classified as employees and independent contractors, as well as creatives such as photographers, stylists, casting directors, make-up artists, and hairdressers. A “...
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