Many state and local government employment laws went into effect January 1, 2025. Here is a non-exhaustive list of 2025 employment law updates. Contact your Polsinelli attorney if you have any questions or need assistance regarding employment law compliance for these legal updates. Polsinelli provides this material for informational purposes only. This material is not intended for use as legal guidance. Please consult with a lawyer to evaluate your specific situation. The choice of a lawyer is an important decision and should not be based solely upon advertisement. Copyright © 2025. Polsinelli PC, Polsinelli LLP in California, Polsinelli PC (Inc) in Florida.

Governor Hochul signed legislation titled the “New York State Fashion Workers Act” (the “Act”), which has a widespread impact on the modeling industry as it relates to compensation, contractual restrictions, and other workplace protections. The Act takes effect on June 19, 2025. Applicability The Act is geared towards protecting models, regardless of employee or independent contractor status. The Act aims to close any loopholes by placing affirmative requirements and restrictions on model management companies and their clients. Model management companies include those persons or entities engaged in the management, procurement, or counseling of models. The Act applies to clients of model management companies, including retail stores, manufacturers, clothing designers, advertising agencies, photographers, publishing companies or any other person or entity that receives modeling services. Requirements and Prohibitions for Model Management Companies All model management companies must register with the New York Department of Labor within one year of the effective date of the Act, by June 19, 2026. After the registration is complete, the model management company must post their certificate of registration in a conspicuous place within their physical office and on their website. Model management companies may file a request for exemption if it: 1) submits a properly executed request for exemption; 2) is domiciled outside of New York and is licensed or registered as a model management company in another state that has the same or greater requirements as the requirements under this Act; and 3) does not maintain an office in New York or solicit clients located or domiciled within New York. The registration and exemption status only lasts for a two-year period. Notably, if the management company employs more than five employees, then it must post a surety bond of $50,000. The Act broadly imposes a fiduciary duty upon model management companies that is owed to their models. Acting in good faith, model management companies must, inter alia, conduct due diligence, procure opportunities, provide final agreements to models at least twenty-four hours prior to the start of modeling services, disclose any financial relationship with a client, and identify their registration number in any advertisement (including social media). The Act seeks to provide transparency to models’ compensation by requiring the management companies to clearly specify costs that the model must reimburse and providing the model with supporting documentation of those costs on a quarterly basis. The management companies must ensure that employment of a sexual nature or involving nudity complies with state civil rights law. The Act also considers the management company’s past and future use of images. For former models, the Act requires the management companies to send a written notification to the models informing them if the company continues to receive royalties. For future use of a model’s image, the management company must obtain a written consent separate from the representation agreement that details the creation, use, duration, scope and rate for that digital replica. The Act also prohibits management companies from engaging in certain activities. Among prohibitions related to compensation and fees, the Act prohibits a contractual term greater than three years and prohibits the contract from automatically renewing without affirmative consent from the model. The model management companies are prohibited from taking more than twenty percent of a commission fee. Model management companies are prohibited from discrimination, harassment and retaliation. A new topic of interest is the Act’s prohibition on altering the model’s digital replica using artificial intelligence. Finally, the Act specifies that a management company cannot present a power of attorney agreement as a necessary condition to working with the management company. Requirements of Clients The language of the Act establishes client responsibilities owed to models as it relates to compensation and safety. Clients should be aware that if a model works over eight hours in a twenty-four-hour period, they must receive overtime pay and they must receive at least one thirty-minute meal break. Clients must only offer opportunities that do not pose an unreasonable risk of danger, ensure that work opportunities of a sexual nature or involving nudity comply with civil rights law, and allow the model to be accompanied by a representative to any work opportunity. Causes of Action and Penalties Under the Act, models have a private right of action in addition to the enforcement authority of the commissioner and attorney general. The Act provides a six-year statute of limitations. The commissioner may impose penalties of $3,000 for the initial violation and $5,000 for subsequent violations. Before a court of competent jurisdiction, a plaintiff may obtain actual damages, reasonable attorneys’ fees and costs, and liquidated damages up to 100% for non-willful violations and up to 300% for willful violations. Conclusion In anticipation of the Act going into effect, model management companies should thoroughly review and update their policies and practices and prepare to register or seek an exemption. Likewise, businesses that hire models should review their practices and revise policies as necessary to ensure compliance with the Act. Polsinelli attorneys are available to assist with any questions that may arise in anticipation of the June 19, 2025, effective date and any questions that may arise thereafter.

New Jersey recently became the newest state to enact pay transparency legislation. On November 18, 2024, New Jersey Governor Murphy signed Bill S2310 (the “Act”) into enactment. The Act will go into effect on June 1, 2025. The Act applies to employers – broadly defined as “any person, company, corporation, firm, labor organization or association which has 10 or more employees over 20 calendar weeks and does business, employs persons or takes applications for employment within this State, including the State, any county or municipality or any instrumentality thereof.” The Act also applies to employment agencies. Beginning this summer, employers must incorporate two new practices under the Act. First, the Act attempts to provide notice of promotional opportunities to the employer’s existing workforce. The Act requires that employers “make reasonable efforts to announce, post or otherwise make known opportunities for promotion that are advertised internally within the employer or externally on internet based advertisements, postings, printed flyers or other similar advertisements to all current employees in the affected department or departments of the employer’s business prior to making a promotion decision.” However, there are exceptions to the notice requirement. Promotions for current employees based on years of service or performance, or instances of emergencies, are not subject to the notice requirement.   Second, the Act requires that employers specify the compensation package offered for new job openings and transfers. Specifically, employers are required to include the hourly or salary rate, or range and general description of benefits in the job advertisements for internal and external new jobs and transfer opportunities. Failure to comply with the Act’s requirements will lead to a summary proceeding with the Commissioner of Labor and Workforce Development. Employers found in violation of the Act are subject to civil penalties ranging from $300 for first time violations and $600 for subsequent violations. Only one violation exists despite an employer listing the opportunity for a new job, transfer or promotion on multiple forums. In anticipation of the Act going into effect, employers should review and update their job posting policies and practices. Employers should provide training to those employees involved in the hiring process to ensure understanding of compliance with the Act. Polsinelli attorneys are available to assist with any questions that may arise in anticipation of the June 1, 2025 effective date and any questions that may arise thereafter.