* § 1038. Violations, penalties and procedures. 1. Any model
management company or model management group that has failed to comply
with the registration requirements of section one thousand thirty-two of
this article shall be deemed to have violated this article.

2. Any model management company or model management group that has
failed to comply within the time specified by law with an order issued
by the commissioner to comply with the registration requirements of
section one thousand thirty-two of this article shall be deemed to have
violated this article.

3. (a) The commissioner may impose a civil penalty upon a model
management company, model management group, or client that has been
deemed to have violated this article, for three thousand dollars for the
initial violation, and for five thousand dollars for a second or
subsequent violation.

(b) The order imposing such civil penalty may be served personally or
by certified mail in accordance with section thirty-three of this
chapter. Such order shall be in writing and shall describe the nature
of the violation, including reference to the provisions of subdivisions
one, two and three of this section alleged to have been violated.

4. An order issued under this section shall be final and not subject
to review by any court or agency unless a review is had pursuant to
section one hundred one of this chapter. Provided that no proceeding for
administrative or judicial review as provided in this chapter shall then
be pending and the time for initiation of such proceeding shall have
expired, the commissioner may file with the county clerk of the county
where the person against whom the penalty has been imposed has a place
of business the order of the commissioner or the decision of the
industrial board of appeals containing the amount of the civil penalty.
The filing of such order or decision shall have the full force and
effect of a judgment duly docketed in the office of such clerk. The
order or decision may be enforced by and in the name of the commissioner
in the same manner, and with like effect, as that prescribed by the
civil practice law and rules for the enforcement of a money judgment.

5. If any model management company has failed to comply within twenty
days of an order by the commissioner to register or renew registration,
the commissioner may seek to enjoin such unlawful activity, pursuant to
the civil practice law and rules.

6. The attorney general may bring and maintain an action in a court of
competent jurisdiction to enforce the provisions of this article when
the attorney general has determined there is reasonable cause to believe
that a model management company, model management group, or client has
engaged in repeated fraudulent or illegal acts or otherwise demonstrates
persistent fraud or illegality in the carrying on, conducting, or
transacting of business.

7. (a) A model who is aggrieved by a violation of this article may
file a complaint with the commissioner within six years after the acts
alleged to have violated this article occurred. The commissioner shall
prescribe the form of the complaint, which shall include, at a minimum:

(i) the name and mailing address of the model and of the person or
entity alleged to have violated this article;

(ii) a statement detailing the terms of the model's contract,
including a copy of such contract if available;

(iii) the model's occupation;

(iv) a statement detailing the alleged violations of this article; and

(v) a signed affirmation that all facts alleged in the complaint are
true.

(b) (i) Upon receiving a complaint alleging a violation of this
article, the commissioner shall send the person or entity named in the
complaint a written notice of complaint. The commissioner shall send
such notice by certified mail in accordance with section thirty-three of
the labor law and shall bear the cost of sending such notice.

(ii) Notice shall include:

(1) a copy of the complaint;

(2) materials of remedies available to the model for the violations of
said article by the person or entity named in the complaint;

(3) materials informing the person or entity that twenty days after
receiving the notice of complaint, the person or entity identified in
the complaint must answer; and

(4) materials informing the person or entity that failure to respond
to the complaint will create a rebuttable presumption in any civil
action commenced pursuant to this article that such person or entity
committed the violations alleged in the complaint.

(c) The response shall include:

(i) a written statement that the model has been paid in full and proof
of such payment;

(ii) a written statement that the model has not been paid in full and
the reasons for the failure to provide such payment; or

(iii) a written statement and any proof responding to the violations
alleged in the complaint.

(d) (i) Upon receiving the written response, the commissioner shall
send the model a copy of:

(1) the response;

(2) any enclosures submitted to the commissioner with the response;
and

(3) any other information about the status of the complaint.

(ii) If the commissioner receives no response from the person or
entity alleged to have violated this article to the notice of complaint
within the time provided by this subdivision, then there shall be a
determination that such person or entity committed the violations
alleged in the complaint. The commissioner shall mail a notice of
non-response to both the model and the person or entity named in the
complaint by regular mail and shall include with such notice proof that
the commissioner previously mailed the notice of complaint to the person
or entity named in the complaint by certified mail.

8. An aggrieved model may bring and maintain an action in a court of
competent jurisdiction to enforce the provisions of sections one
thousand thirty-four and one thousand thirty-five of this article. A
model management company or model management group that violates these
sections shall be liable for actual damages to any model that has
suffered damages due to such violation, reasonable attorneys' fees and
costs, and, unless the model management company or group proves a good
faith basis to believe that its actions were in compliance with the law,
an additional amount as liquidated damages in an amount of no more than
one hundred percent of the total amount of actual damages, except such
liquidated damages may be up to three hundred percent if found that the
actions were willful.

9. No client, model management company, or model management group
shall be permitted to retaliate against a model for exercising any of
such model's rights under this article, including the right to raise
complaints with the client, model management company, model management
group, commissioner, or attorney general. Any violation of this section
shall be subject to enforcement in the same manner as prescribed in
section two hundred fifteen of this chapter.

* NB Effective June 19, 2025