The Bottom Line
- The New York State Fashion Workers Act is now in effect as of June 19, 2025.
- Advertisers that engage models to perform or appear in a photo shoot or runway in any media (including social media and where such performance is live, filmed or taped), must now comply with the New York State Fashion Workers Act. This requires, among other things, establishing legally compliant policies that address abuse and harassment on set.
- This new law addresses digital replica use and requires that advertisers obtain a model's clear and conspicuous consent prior to any such creation and use of the model's digital replica as to the scope of use and compensation related thereto.
New York State's new Fashion Workers Act, which went into effect on June 19, 2025, marks a significant shift in how the fashion industry must treat and protect its models, regardless of whether they are classified as employees or independent contractors. This new law governs the actions of both the clients of model management companies — such as advertisers, agencies and production companies that employ or engage models — and the model management companies that place models with clients to perform services. This is the latest addition to the growing patchwork of legislation aimed at protecting entertainers, particularly in light of the meteoric rise of generative AI and the threat it poses to the industry.
If you're an advertiser, advertising agency, or other entity employing or engaging models, or a model management company placing models, here's what you need to know about the key provisions of the Fashion Workers Act and how it may impact your practices moving forward.
Digital Replica Use
Digital Replicas — which are computer-generated versions of a person's likeness or voice, enabled by generative AI — give producers the ability to essentially 'clone' a performer and create new performances without their involvement, bypassing traditional hiring practices. The unauthorized use of a performer's digital replica can jeopardize future job opportunities and potentially undermine a performer's ability to control the way in which their likeness is used.
To address these concerns, the Fashion Workers Act requires that model management companies and clients obtain a model's separate and explicit written consent prior to creating or using a digital replica of the model. This consent must specify the scope, purpose, and duration of such use, as well as the compensation payable to the model in consideration for such use. For entities wishing to secure digital replica rights, reliance on broad contractual terms granting likeness rights like "in any manner, for any and all uses, in all forms of media, in perpetuity" will not suffice, as such terms do not separately and explicitly address digital replica use.
The throughline here – transparency, consent, compensation and control – is consistent with the basic principles of ethical AI use proffered by the leading labor unions of the entertainment industry, including SAG-AFTRA and the Writers Guild of America. This is also reflected in New York State legislature by preceding legislation, SB 7676B (signed into law on December 13, 2024), which requires separate and explicit written consent for digital replace usage under performer-related contracts.
Additional Protections
In addition to implementing guardrails around digital replica use, the Fashion Workers Act imposes new payment and working condition requirements for covered "clients" (like advertisers and advertising agencies) engaging models, including the following:
Payments
- Models must be paid time and a half, based on their contracted hourly rate, for any work that exceeds eight hours in a 24-hour period.
- The rate of pay for any digital replica use must be clearly stated in the model's agreement.
Working Conditions
- One (1) 30-minute meal break is required for work that exceeds eight hours in a 24-hour period.
- The work must not pose an unreasonable risk of danger to the model. Unreasonable risk of danger includes if the company fails to establish and share written copies of its abuse, harassment, and inappropriate behavior policies, which must comply with existing law.
- Work requiring nudity or sexually explicit material must comply with New York Civil Rights Law §52-c, subdivision 3 (which prohibits the dissemination or publication of a sexually explicit depiction of an individual without their consent).
- Models must be allowed to bring a representative (e.g., agent, manager, chaperone) on set.
Insurance
- Liability insurance covering the health and safety of models must be provided.
Model Management Company Requirements and Prohibitions
The Fashion Workers Act also imposes requirements on model management companies that manage, place, or render vocational guidance/counseling services to models. Notably, the Act establishes that model management companies, which could include influencer marketing agencies, have a fiduciary duty to the models they represent.
Requirements
Accordingly, such companies must, among other things:
- Act in the best interest of the models under their representation;
- Conduct due diligence to ensure employment or engagement procured for models does not pose an unreasonable risk of danger to the model, including via establishing and communicating a company policy addressing abuse and harassment of, and other inappropriate behavior towards, models, which complies with existing law;
- Ensure work that requires nudity or sexually explicit material complies with New York Civil Rights Law §52-c, subdivision 3;
- Address potential conflicts of interest by disclosing any financial relationship that may exist between the model management company and the party hiring the model;
- Provide models with written copies of the management company's deal memos which specify the models' compensation, including remuneration and compensation that will be owed to models upon the conclusion of their services, prior to the commencement of work and final booking agreements in the model's preferred language no later than 7 days after the conclusion of the model's services, and provided that best efforts must be made to sign such contract ahead of booking;
- Be upfront and transparent about any paycheck deductions, including providing an itemized recitation as to how each item is to be computed and seeking prior written approval from the model of the same;
- Notify former models in writing if the model management company collects royalties due to a model who the company no longer represents; and
- On or before December 21, 2025 register with the New York State Department of Labor, and thereafter post the registration certificate in a conspicuous place in the office and digitally on the company's website, and provide the model management company's registration number in any advertisement for the purpose of soliciting models.
Prohibitions
The law also includes certain prohibitions on model management companies, including but not limited to:
- Requiring a deposit or collecting a fee from a model for signing a contract;
- Securing accommodations for a model without providing the expected rate they will be expected to pay before their stay;
- Deductions for fees or expenses, including interest, that were not agreed to in the model's contract or disclosed as required by the law;
- Paying for travel or visa-related costs with the expectation of reimbursement without prior written approval
- Entering a representation agreement longer than 3 years;
- Charging a commission greater than 20% of the model's total pay;
- Discriminating against or harassing a model based on protected characteristics under the New York State Human Rights Law;
- Creating, altering or manipulating a model's digital replica without clear written consent that must be independent from any representation agreement; and
- Requiring a model to enter into a power of attorney agreement as a condition of being represented by the company. Moreover, a power of attorney agreement cannot cover a model's digital replica.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
