US: Navigating the New York Fashion Workers Act

Why should I read this?

The New York Fashion Workers Act (Act), which came into effect on June 19, 2025, introduces significant protections for models and new obligations for businesses in New York’s fashion industry. If your company engages models, photographers, or agencies (whether in retail, design, or advertising), this law impacts you.

Even with the law in effect, there’s time to adapt before key deadlines. Acting now to align with the law not only mitigates risks but may also enhance your reputation for ethical operations. 

Model management companies (MMCs) must register with the New York Department of Labor (NYDOL) by December 21, 2025, with fees ranging from $500 to $700 based on company size. Non-compliance risks penalties or reputational damage. 

The NYDOL is expected to issue further guidance on enforcement, especially for AI violations. Other states may adopt similar laws, potentially standardizing AI consent and model protections across different states.

What should I do?

The Act applies to MMCs and to any business hiring models or engaging MMCs in New York, including retailers, designers, photographers, and advertising agencies. MMCs face strict requirements such as NYDOL registration and acting in models’ best interests. Clients must ensure compliance with payment terms, overtime rules, and meal break provisions, even for freelance engagements.

Key steps to take include:

• Begin by reviewing contracts with models and MMCs to make sure you are complying with the Act’s requirements. 
• Verify that MMCs you work with are preparing to register with the NYDOL by December 21, 2025.
• Make sure models are paid within 45 days and receive overtime for work exceeding 8 hours daily.
• Set up or strengthen anti-harassment policies and confidential reporting mechanisms.
• If your business uses AI to replicate a model’s likeness in your content, obtain separate and explicit written consent beforehand. This includes ensuring consent covers specific uses, duration, and compensation.
• Among other things, do not: charge sign-up fees or deposits, require contracts longer than 3 years or with auto-renewals without consent, and exceed a 20% commission cap.

What else do I need to know about the Fashion Workers Act?

The Act, signed into law on December 21, 2024, aims to protect models and content creators. It supports fair payment practices, transparent contracts, and safeguards against exploitation including unauthorized AI use of a model’s likeness. The Act seeks to create a more equitable industry while imposing new responsibilities on businesses.

The Act is a commendable effort to address longstanding issues in the fashion industry, particularly for models vulnerable to exploitation. Its focus on AI consent is forward-thinking, given the rapid rise of digital likeness use. However, the Act’s compliance burden, especially for smaller businesses navigating tight margins, could pose challenges. Ambiguities in enforcement details may create uncertainty, particularly for companies with limited legal resources. Proactive compliance is essential not only to meet legal obligations but also to demonstrate ethical leadership in an industry under increasing scrutiny. Aligning with the Act now positions your business as a responsible player in New York’s fashion hub.