A Shift That Was Long Overdue

New York’s Fashion Workers Act (FWA), which went into effect in June 2025, marks a turning point for the industry. For the first time, model management companies and fashion clients are required by law to uphold basic safety, payment, and transparency standards. It’s a long-overdue correction to decades of underregulation.

But for brands and agencies scrambling to comply, the law also raises a real question:

What now?

The Fork in the Road: Three Paths Forward

Faced with new legal requirements, fashion clients and agencies generally have three options:

1. Convert models to W-2 employees (full-time or part-time)

   • This approach guarantees compliance—workers' comp, clear payroll records, etc.—but often comes at a high cost.

   • The model loses flexibility, gets taxed differently, and may earn less after deductions.

   • Most agencies and models resist this route because it breaks with the industry’s fast-moving, project-based structure.
     
     

2. Use an Employer of Record (EOR)

   • Some brands may turn to an Employer of Record (EOR)—a third-party payroll provider that hires freelancers on the company’s behalf. EORs can be a fast way to guarantee W-2 compliance without adding to internal headcount.

   • That said, EORs may not be ideal for every situation. The added cost can be significant, and for models, it can create confusion: they’re technically employed by a company they’ve never heard of, with limited visibility into terms or deductions.

   • For short-term creative work, especially in fashion, the W-2 route can feel out of step with how the industry operates.

3. Stay 1099—but do it right

   • This means continuing to engage models as independent contractors, while proactively meeting the FWA’s requirements: clear contracts, on-time payments, insurance, and safe working conditions.

   • It requires more thought and infrastructure, but it’s ultimately more respectful of the model’s autonomy—and more sustainable for everyone.

The Case for the Third Path

The FWA doesn’t require you to turn models into employees.

The law was written to protect models regardless of classification. In fact, the word “independent contractor” appears in the bill for this very reason: the drafters understood that most models don’t want a traditional employment relationship. They want transparency, fair payment, safety, and agency over their image—without giving up the flexibility that drew them to the work in the first place.

Preserving 1099 status is not a loophole. It’s an opportunity to modernize the contract work experience—to honor the spirit of the law while avoiding the unnecessary friction of W-2 conversion.

What Compliance Looks Like in Practice

Here’s what being proactive under the FWA really means:

• Make it easy for the models to secure workers’ comp and liability insurance for every shoot in their own name—even when models are contractors.

• Ensure models receive deal memos and full booking terms before the job starts.

• Obtain specific, written consent before using a model’s image—especially digital replicas.

• Pay models within 30–45 days (even if you haven’t been paid yet).

• Give models visibility into any deductions or fees.

None of this is rocket science. But if your current system was designed for a less regulated era, the gaps are likely bigger than you think.

From Minimum Compliance to Creative Leadership

In an industry built on image, brands that get this right won’t just stay out of trouble—they’ll stand out.

Being one of the first clients or agencies to nail FWA compliance (without falling back on W-2s or boilerplate contracts) positions you as a white knight in an industry famous for mistreatment. You’ll attract better talent. You’ll reduce legal exposure. And you’ll help shift the reputation of fashion from exploitative to equitable.

Final Thought: Be the Standard, Not the Exception

The Fashion Workers Act is just the beginning. Other states are watching. Agencies are evolving. Models are organizing.

Doing the bare minimum won’t cut it—and overcorrecting with expensive middlemen won’t scale.

Forward-thinking brands will look for solutions that preserve flexibility, support independent work, and meet the letter and spirit of the law. When that happens, compliance won’t be a cost center—it’ll be a competitive advantage.

Want to Stay Compliant—Without Upending How You Work? 

New York’s new rules don’t mean you need to overhaul your process or put every model on payroll. With the right tools, you can protect your team, meet the law’s requirements, and still offer models the flexibility they value. Connect with us here so we can show you how to build a solution that is both compliant and streamlined.

Photo by Voyage Pro on Unsplash