The fashion industry’s legal makeover: What the New York State Fashion Workers Act means for the fashion world

The New York State Fashion Workers Act (“FWA”), effective June 19, represents a significant shift in labor protections for the modeling industry. As the first U.S. law to impose fiduciary duties, contract transparency, and AI consent requirements specifically on model management companies, the FWA aims to address longstanding gaps in how models are treated under the law—especially those working as independent contractors.

For decades, many models have had limited bargaining power. Most are hired through model management companies that operate without a duty to act in the model’s best interest and often include power of attorney clauses in their agreements. That will soon change. Under the FWA, agencies will be required to place model rights at the forefront of their operations. The law applies broadly to model management companies operating in New York, the models they represent (whether employees or independent contractors), and the clients of such companies, including photographers, designers, retailers, manufacturers, and advertisers.

Under the FWA, model management companies must register with the New York Department of Labor and publicly post proof of certification. Model management companies must also act as fiduciaries to their models, placing the model’s interests first in all financial, contractual, and workplace matters. Models must receive written agreements and deal terms at least 24 hours before work begins, and management companies must clearly disclose total compensation. Commission fees are capped at 20%, and agencies may no longer collect deposits in advance. Payment to models must also be made within 45 days of job completion. The FWA also prohibits contracts from requiring power of attorney or including automatic renewal clauses without the model’s affirmative consent.

Further, the FWA  imposes obligations on management companies to protect models from discrimination, harassment, and retaliation. These protections must be implemented through enforceable internal policies and employee training programs that prioritize safety, equity, and accountability.

In a significant development addressing the use of emerging technologies, the FWA also requires that model management companies obtain separate, explicit written consent before using or authorizing the use of a model’s likeness in AI-generated or digitally manipulated content. This standard is similar to the protections currently afforded to those who engage in photography involving sexually explicit or nude images and is intended to give models more control over how their image is replicated and distributed in digital formats.

The FWA will be enforced by the New York Department of Labor, which may impose fines of $3,000 for a first violation and $5,000 for subsequent violations. In addition, models will have a private right of action and may file suit within six years of the alleged violation to seek actual damages, attorney’s fees, and liquidated damages.

With the effective date approaching, model management companies should begin preparing now to ensure compliance. This includes reviewing and revising compensation practices, updating contracts and handbooks to reflect the new legal requirements, eliminating any reliance on power of attorney clauses, and creating systems for consent and disclosure regarding the use of a model’s likeness in AI or digital media. Equally important is the implementation of comprehensive policies and training programs to prevent harassment and protect model rights in the workplace.

The FWA signals a landmark shift toward greater accountability in the modeling industry. For management companies and their clients, early preparation will be key to avoiding costly penalties and disruptions. As the fashion industry undergoes its legal makeover, the message is clear: style may be subjective, but compliance is now mandatory.

If your organization needs assistance navigating these changes or ensuring compliance, our team is ready to help you take the next steps.

This publication is intended for general informational purposes only and does not constitute legal advice or a solicitation to provide legal services. The information in this publication is not intended to create, and receipt of it does not constitute, a lawyer-client relationship. Readers should not act upon this information without seeking professional legal counsel. The views and opinions expressed herein represent those of the individual author only and are not necessarily the views of Clark Hill PLC. Although we attempt to ensure that postings on our website are complete, accurate, and up to date, we assume no responsibility for their completeness, accuracy, or timeliness.