NY Fashion Worker's Act - The AMA needs your help
Updated: 5/31/2022
To our community,
The AMA urgently needs your help. If you do any business in New York, then what I’m about to share may affect you.
This week you received communication about a new bill that has the potential to dramatically affect creative management agencies - The New York Fashion Worker’s Act. If you have creatives that live or shoot in New York, this bill may affect you. This bill not only affects New York-based companies but also any creative management agency doing business in New York, as well as potentially affecting our New York based ad agencies and brand clients.
While the bill was initially drafted to protect models, it also includes provisions for other “creatives'' such as stylists, casting directors, hair/make-up artists, and photographers. This expanded use of the word “creatives'' will affect our ability to represent, promote and manage our artists. The AMA needs your support now more than ever to help NY legislatures know the negative effects this bill could have on our business.
Here are the ways this legislation could affect your business:
Commission caps at 20%
One of the proposals of the bill caps commissions at 20% for “creatives”. For many of us, this drastically cuts our revenue. There are also provisions in the bill that limit the opportunities to add on consulting fees, to minimize workarounds to this percentage.
Payment within 45 days of Job Completion
The Act also requires payment to creatives within 45 days of job completion. This would mean paying the photographer’s full fees within this timeframe. It states clients must remit payment to creative management agencies within 30 days, but there are no penalties or provisions within the Act to ensure payment is actually received. With the cost-plus model that the photo industry works under, we all know it can be difficult to organize a job wrap and generate a final invoice within a month. Advances oftentimes don’t cover the full expenses on a project, let alone creative fees to your artists. Asking creative management agencies to also pay fees to photographers, or the other creative artists we represent, before receiving final payment from a client can be detrimental to the health of our small businesses, if not impossible.
Then, it intensifies. For the first offense of non-payment within the timeframe, your company could be assessed $3,000. For every additional offense, it increases to $5,000.
Requires Surety Bond of $50,000
Additionally, the Act has a provision that requires all creative management agencies doing business in New York with 5 or more employees to register annually and pay a $50,000 surety bond. If you do not register, it’s a class B misdemeanor.
No automatic renewals of representation contracts
The Act has other provisions incorporated into its language regarding contracts. One of the major issues we’ve identified is that they may not automatically renew. This would require creative management agencies to renew representation contracts with the creatives they represent on an annual basis. There are additional provisions regarding caps on expenses as well.
Adversely affects production in New York
There are also proposals in the Act that will adversely affect clients and potentially pull business away from New York. It makes production in New York much more complicated for brands and agencies. This bill has the potential to dramatically affect the photo and fashion industry as a whole.
We need your help now
Things are moving fast with this legislation. Proponents of this bill have told us that they hope to have it passed by the end of June. You can help the AMA by joining as a member, and by joining the task force to educate other creative management agencies about the adverse effects of this legislation. The stronger our membership is, the more state legislatures will take notice of our case.
Let’s also be blunt, we need financial support to fight this legislation. Please donate now to help cover the legal and lobbyist costs. We have a chance to change this legislation but we need to act fast.
Tomorrow morning we are hosting an urgent Town Hall at 12PM EDT / 9AM PDT to address our community’s concerns. Please come join us to learn more about how this bill could affect your business and how to get involved. We are stronger together.
Kelly Montez
AMA President
Updated: 5/25/2022
Update on the New York Fashion Worker’s Act
To our community,
We hope everyone is continuing to stay safe and in good health.
Recently, a bill has been proposed in the New York State Senate which will affect our membership because it provides new rules and regulations for model and creative management companies.
This Act, if passed in its current text, will establish new requirements for all creative management companies doing business in New York and may create financial implications for companies with 5 or more employees.
Potential implications
Annual registration requirement in the state of New York within one year of the Act passing
All companies with 5+ employees to pay a surety bond of $50,000
Requirement to pay all artists within 45 days of the last shoot date
Commission will be capped at 20% (including photographers)
Additional provisions will cap certain expenses charged to Artists
Restriction on the right to have automatic renewals on all Artist Agreements
Failure to comply will trigger civil penalties up to $3,000 for the first violation and up to $5,000 for each additional violation
Intentional failure to comply with registration constitutes a class B misdemeanor
This act has passed the NY State Senate Labor Committee and is now headed to the Senate Finance Committee for a vote. If it passes the Senate, it will proceed to the Governor, who will either sign it into law or veto it. Supporters of the bill are hoping that this could happen as early as June.
The AMA is investigating how this act will affect its member agencies. To support the work that we are doing, join a committee or become a member today.
REFERENCES
https://www.nysenate.gov/legislation/bills/2021/s8638
Donate to the NY Fashion Worker's Act Defense Fund
This information is designed as a service to the AMA community intended only to provide general information.
Updated: 5/25/2022
