On June 19, 2025, the New York State Fashion Workers Act (the “Act”) goes into effect, triggering numerous changes to the current employment structure for models in New York. The Act,[1] which Governor Hochul signed into law in December 2024, amends New York’s Labor Law to establish new responsibilities and penalties for agencies in an effort to improve treatment of fashion industry workers.
Proponents of the new law highlight the fashion industry’s major role in boosting New York’s economy, employment and tourism, while the models who make that possible are “not afforded basic labor protections in New York.”[2] They largely attribute the lack of protections to the unique structure of the model–management relationship.[3] Modeling agencies previously characterized themselves as management companies under New York law, claiming that their role only incidentally includes employment opportunities, otherwise known as the “incidental booking exception.”[4] This allowed modeling agencies to avoid licensing requirements and employment regulations that other similarly-structured organizations, like talent agencies or employment agencies, face—leaving models with fewer protections.[5] The Act eliminates that legal loophole, increasing modeling agencies’ accountability and outlining complaint procedures for violations.
Model Management Companies and Models
The Act covers any Model Management Company (“MMC”), defined as “any person or entity . . . that (a) is in the business of managing models participating in entertainments, exhibitions or performances; (b) procures or attempts to procure, for a fee, employment or engagements for persons seeking employment or engagements as models; or (c) renders vocational guidance or counseling services to models for a fee.”[6] It does not cover persons or entities licensed as employment agencies under New York’s General Business Law.
“Models” are individuals who, in the course of their “trade, occupation or profession, perform[] modeling services” regardless of their status as employee or independent contractor.[7] “Modeling Services” broadly includes the appearance by a Model in photo sessions; live, filmed, taped or runway performances, including on social media platforms; providing an example, standard or representation; or castings, fittings, photoshoots, among others.[8]
New Requirements Under the Act
The Act sets out certain new requirements for MMCs to increase their transparency and accountability, protect Models’ labor and financial interests, and promote Model safety:
- Registration. MMCs are required to register with the New York Department of Labor by June 19, 2026 to be eligible to engage in business in New York or enter into any arrangement with a Model or Client. “Clients” of a MMC include any person or entity contracting for performance of Modeling Services from the MMC or a Model.[9] If two or more MMCs are majority owned by the same parent, entity or person (classified as a Model Management Group by the Act), they can satisfy the reporting requirement as a group on a consolidated basis.[10] Registration exemptions apply to MMCs that (i) are registered or licensed in another state with same or greater requirements, (ii) do not solicit Clients located or domiciled in New York or (iii) apply for and receive an exemption from the New York Department of Labor.
- Fiduciary Duty. Under the new law, MMCs owe Models a fiduciary duty. This means MMCs must act in good faith and in the Models’ best interests through the entire representation, from negotiations and contractual affairs to financial management and protection of the Models’ legal and financial rights.[11] For example, MMCs are expected to conduct adequate due diligence to protect their Models from abuse, harassment, or inappropriate behavior (including unlawful dissemination of Modeling Services which involve sexually explicit material) towards the Models through any employment opportunity procured.[12] Among other duties, a MMC must also: (i) notify former Models if it collects royalties owed to a Model it no longer represents; (ii) disclose any financial relationship the MMC may have with a Client; (iii) provide Models with the final agreements with Clients; and (iv) seek prior written approval from Models clearly specifying which items originally paid for by the MMC will be ultimately deducted from the Model’s compensation.[13]
- Client Duties. For any engagement exceeding eight hours in a 24-hour period, Clients of MMCs must pay Models overtime (at time-and-a-half) and provide them with a 30-minute meal break.[14] As with MMCs, Clients must ensure their engagement of Modeling services do not pose an unreasonable risk of danger to the Model, including abuse, harassment or other forms of inappropriate behavior (including unlawful dissemination of Modeling services which involve sexually explicit material).[15] Clients are also required to provide liability insurance to cover the health and safety of Models.
Prohibitions
The Act restricts MMCs from the following:
- Requiring or collecting fees or deposits from Models to enter an agreement;
- Providing Models with housing accommodations without first specifying, in writing, the rate charged for the stay;
- Deducting fees or expenses from a Model’s pay other than agreed-upon commission and items advanced;
- Advancing travel-related costs without written consent from the Model;
- Binding a Model to a contract term greater than three years or granting automatic renewal without the Model’s affirmative consent;
- Imposing a commission greater than 20% of the Model’s compensation; and
- Engaging in discrimination or harassment against a Model because of any protected class status.[16]
MMCs are also prohibited from requiring Models to sign a Power of Attorney agreement or provision as a condition for representation. Power of Attorney provisions shall be optional only.[17]
Violations
MMCs deemed in violation of the Act face a civil penalty of $3,000 for the initial violation and $5,000 for the second or subsequent violations.[18] The Act also provides Models with a private right of action against MMCs for alleged violation of the Act and protects them from retaliation for exercising any rights established by the Act.[19]
Preparation
MMCs and Clients alike face stringent responsibilities and duties under the Act, and should take the following steps to comply:
- After registering with the Department of Labor by June 16, 2026, MMCs should (i) clearly and conspicuously post a copy of the MMC’s certificate of registration; and (ii) include the MMC’s registration number in any advertisement or social medial profile.
- MMCs and Clients should update employee handbooks and policies to comply with the new duties and protections.
- MMCs and Clients should revise template contracts and agreements to reflect new requirements.
- MMCs and Clients should coordinate with Human Resources and Payroll regarding changes to the representation structure, including to compensation and advancement of costs, such as travel or visa-related expenses ultimately charged to the Model, without the Model’s consent.
Models’ Control Over Artificial Intelligence
The Act also contemplates the potential impact of artificial intelligence (“AI”) on employment in the fashion industry and includes the use of a digital replica in its definition of “Modeling Services” covered by the Act. The Act defines a digital replica as “a significant, computer-generated or artificial intelligence-enhanced representation of a Model’s likeness, including but not limited to, their face, body, or voice, which substantially replicates or replaces the Model’s appearance or performance, excluding routine photographic edits such as color correction, minor retouching, or other standard post-production modifications.”[20] MMCs must obtain express written consent from a Model, separate from the parties’ representation agreement, for the creation or use of the Model’s digital replica. That express consent should include details regarding the scope, pay rate, duration and purpose of use of the digital replica.[21] Nor can Clients create, alter or manipulate a Model’s digital replica with AI without first obtaining express written consent from the Model.[22] Though use of AI remains widely unregulated—and there is a possibility the federal government will preempt States’ regulation of AI[23]— the New York State Fashion Workers Act seeks to promote and protect models’ rights and control over use of their digital likeness.
[1] A copy of the Act is available at https://www.nysenate.gov/legislation/laws/LAB/A36 (“Act Website”).
[2] See S9832/A5631, Justification Section.
[3] Id.
[4] Id.
[5] Id.
[6] See Act Website, Section 1031.
[7] Id.
[8] Id.
[9] Id.
[10] Id.
[11] See Act Website, Section 1034.
[12] Id.
[13] Id.
[14] See Act Website, Section 1037.
[15] Id.
[16] See Act Website, Section 1035.
[17] See Act Website, Section 1036.
[18] See Act Website, Section 1038.
[19] Id.
[20] See Act Website, Section 1031.
[21] See Act Website, Section 1034.
[22] See Act Website, Section 1035.
[23] See Clare Duffy, House Republicans want to stop states from regulating AI. More than 100 organizations are pushing back, CNN (May 20, 2025), https://www.cnn.com/2025/05/19/tech/house-spending-bill-ai-provision-organizations-raise-alarm.