Fashion Workers Act: Duties for Model Management Companies

New York’s Fashion Workers Act requires covered model management companies to register, act in models’ best interests, document bookings, control deductions, and obtain separate consent for digital replicas. These obligations now apply alongside existing contract, intellectual-property, and labor laws.

For management businesses, compliance requires operational changes, not just revised contract language. Booking staff, accounting teams, and managers need consistent procedures that protect models and produce reliable records.

The starting point is understanding which businesses the law covers and when each obligation took effect.

Key Takeaways

• Substantive duties took effect June 19, 2025; registration requirements began December 21, 2025.
• Registration lasts two years, with renewal due at least 90 days before expiration.
• Companies owe represented models a fiduciary duty and must obtain prior written approval for specified deductions.
• Booking disclosures and final agreements have separate timing requirements.
• Digital-replica consent must be separate from the representation agreement and identify scope, purpose, compensation, and duration.

Which Companies Must Comply With the Fashion Workers Act?

The law is New York Labor Law Article 36. According to the New York State Department of Labor, model management companies and groups that conduct business, represent models, or are based in New York must register.

An out-of-state headquarters therefore doesn’t automatically remove a business from coverage. Companies managing New York modeling work need to assess their activities, rather than rely solely on their incorporation address or the title printed on their agreements.

The distinction between the two effective dates also matters. The substantive duties and prohibitions began on June 19, 2025. Registration requirements followed on December 21, 2025.

By October 2026, both sets of requirements are in effect. A company that has completed registration still needs compliant booking, accounting, and consent practices. Conversely, updating contracts doesn’t replace registration.

For businesses operating across several markets, New York compliance should be part of the workflow whenever their activities bring them within the law.

Registration, Fees, and Public Disclosures

Registration costs and the surety bond

NYSDOL administers registration through its model management registration system. Its Fashion Workers Act FAQs explain the fee categories and bond requirement.

The applicable amounts depend on employee count:

Employee category	Registration fee	Surety bond requirement
Five or fewer employees	$500	No bond required under this threshold
More than five employees	$700	$50,000 surety bond

NYSDOL’s employee-count guidance concerns employees working in New York or performing work related to models there. A multistate business should incorporate that distinction into its registration analysis.

The bond amount is separate from the registration fee. Companies in the larger category need to address both requirements in their compliance budget.

Renewal and visible registration information

Registration remains valid for two years. Companies must submit renewal applications at least 90 days before expiration, so the renewal calendar should begin well before the certificate expires.

NYSDOL also requires companies to display their registration certificate at their office and on their website. Registration numbers belong in advertisements seeking models, including relevant social-media profiles, and in contracts with models or clients.

These requirements extend beyond the legal department. Marketing staff need approved recruitment templates, while booking teams need updated contract forms.

Assign one person responsibility for registration records and another for implementing required disclosures across company materials.

Fiduciary Duties and Financial Controls

Acting in the model’s best interests

Section 1034 of New York’s Labor Law establishes a fiduciary duty toward represented models. That duty includes good faith, utmost honesty, and integrity.

It reaches representation, negotiations, contracts, financial management, and protection of models’ legal and financial rights. As a result, a company cannot treat its responsibilities as limited to introducing a model to a client.

Internal approval procedures should address situations where the company’s financial interests differ from the model’s. Managers also need access to the actual booking terms before advising a model to accept work.

A signed representation agreement doesn’t eliminate this statutory responsibility. Contract administration and day-to-day conduct must support the model’s interests throughout the relationship.

Obtaining approval before deductions

Before deducting a company-paid item from model compensation, the company must specify the item and obtain the model’s prior written approval.

The law also requires an itemized explanation of charges and quarterly supporting documentation relevant to their validity. A general expense clause therefore shouldn’t be the company’s only record.

Accounting procedures should connect each deduction to the approval and supporting documentation. Travel charges, promotional expenses, and other company-paid items need records that explain the amount charged.

Keeping approvals in a model’s file while maintaining deductions in an unrelated spreadsheet creates avoidable gaps. A connected record makes disputed charges easier to investigate and accounting statements easier to explain.

Booking Paperwork Before and After Work

Deal memos before services begin

Section 1034 requires a deal memo documenting an accepted booking as soon as reasonably practical before services begin. NYSDOL’s guidance requires disclosure before work starts and an opportunity for the model to agree to compensation.

The memo must address remuneration and compensation owed when the services conclude. NYSDOL also identifies total compensation and the payment term as required information.

Booking teams should treat the memo as a required step before work begins. An informal conversation about a rate leaves too much uncertainty about what the model accepted.

Our discussion of modeling contract terms and fees addresses related concerns involving compensation, exclusivity, and termination provisions.

Final agreements and language requirements

The deal memo doesn’t replace the final agreement negotiated with the client. The management company must provide that agreement in the language the model requests.

The statute requires best efforts to obtain signatures before the booking. It also requires delivery of the final agreement within seven calendar days after the services conclude.

These are separate responsibilities with different timing requirements. Companies should record when they sent the deal memo, sought signatures, and delivered the final agreement.

Keep client negotiations, approved changes, and the final version together. Otherwise, staff may mistakenly send an earlier draft that omits revised compensation or usage restrictions.

Digital Replicas Require Separate Written Consent

The Fashion Workers Act addresses the creation and use of a model’s digital replica. Management companies must obtain clear written consent identifying the scope, purpose, pay rate, and duration.

That consent must be separate from the representation agreement. A broad authorization buried in standard agency terms doesn’t satisfy the separate-consent requirement.

Permission for a campaign shoot doesn’t, by itself, establish permission to create or use a digital replica.

Companies should distinguish ordinary campaign usage terms from authorizations involving a digital replica. Image licensing and replica consent can overlap commercially, but the paperwork must address the statutory requirements directly.

The consent record should make the permitted activity understandable. Scope and purpose need enough detail to identify what the model is authorizing. Compensation and duration should also appear expressly.

Operationally, the booking team needs to know whether a project involves a replica before approving the paperwork. If the client later requests a different use, the company should assess whether the existing authorization covers it before agreeing.

At Chase Lawyers, our work with modeling contracts and image rights helps connect these permissions to the actual commercial arrangement.

Enforcement and Related Labor-Law Exposure

NYSDOL identifies registration penalties of $3,000 for a first violation and $5,000 for a second or subsequent violation. Those figures concern registration violations; they aren’t a complete measure of exposure arising from misconduct.

The department also states that contracts violating relevant requirements of the Act are void as a matter of public policy. Companies therefore risk more than an administrative problem when their agreements conflict with mandatory protections.

Separate federal employment rules may also matter. In Rutherford Food Corp. v. McComb, 331 U.S. 722 (1947), the U.S. Supreme Court evaluated the circumstances of the working relationship under the Fair Labor Standards Act rather than treating contractual labels as decisive.

Rutherford concerns federal employment classification, not the Fashion Workers Act. Its relevance is limited but practical: describing a model as an independent contractor doesn’t resolve every labor-law question.

Management businesses need separate analysis of Article 36 compliance, worker classification, and contractual obligations. One document cannot settle every issue.

When a complaint arises, preserve the booking terms, payment records, approvals, and communications. Reconstructing those materials after a dispute begins can leave important gaps.

Frequently Asked Questions

Can a company charge a fee when a model signs?

NYSDOL states that a management company cannot charge a fee or collect a deposit when a model signs an agreement. Intake documents and payment procedures should reflect that prohibition.

This restriction differs from the rules governing deductions for company-paid items. Those deductions require specified disclosures, prior written approval, itemization, and supporting documentation.

Can management require a power of attorney?

No. NYSDOL states that a power-of-attorney agreement between a model and a management company must be optional.

A company should keep any proposed authorization distinct and explain the authority it grants. Optional authorization also doesn’t replace the separate written consent required for digital replicas.

Make Compliance Part of Every Booking

The strongest compliance system connects registration, booking documents, financial records, and consent approvals. Each team needs clear responsibilities and access to the records supporting its decisions.

At Chase Lawyers, we help agencies and models address contracts, image rights, and representation arrangements through our fashion model representation services. We can help align those documents with New York’s requirements and your business operations.

Consistent execution matters as much as compliant language. Each booking should leave a clear record of the terms accepted, permissions granted, and money owed.