In a recent LawFlash, a team of Morgan Lewis lawyers wrote on New York state’s enactment of the Fashion Workers Act, which took effect on June 19, 2025. The act mandates model management companies to register their businesses while imposing a range of duties on both these companies and their clients, including a fiduciary duty applicable to all aspects of “negotiations, contracts, financial management, and the protection of the models’ legal and financial rights.”
Additional prohibitions include charging fees at signing and requiring contracts longer than three years. Clients must provide overtime pay, meal breaks, and liability insurance, among other responsibilities.
The act defines a “model management company” and a “model” and includes the use of digital replicas, highlighting the impact of artificial intelligence on employment. Model management companies pay statutory registration fees based on the number of employees of the registrant and must renew their registration every two years.
The New York Department of Labor will enforce the act, with penalties for violations and a private right of action for models. Further guidance is expected before the law’s implementation, and any implicated entities should review their policies to ensure compliance.
Together with our colleagues on the labor and employment team, Tech & Sourcing @ Morgan Lewis will continue to monitor any additional guidance regarding compliance with the act, the act’s potential impact on talent agreements across industries, and any new contract negotiation trends that arise in response to the newly enumerated statutory obligations of model management companies.