What does it mean?    The law states that models, actors, musicians or people " otherwise engaged in the performing arts" CANNOT be independent contractors. (ie. No 1099 forms)   If models are hired through an "agency"  which is NOT a covered employer   ie. has an actual  WRITTEN  EMPLOYMENT contract not just a management contract with the model, the advertiser, publication, ad agency, photographer or retailer are held to be the actual employer and liable for the taxes and non payment consequences.

Hiring models through someone simply referring to themselves as a "model agency" does not mitigate or eliminate the actual employer liability.   A written employment contract means that the model agency is actually  PAYING the required employer payroll taxes  including unemployment insurance, workers compensation and disability insurance on the models/ talent. ALL models managed by Nexus are properly payrolled through Foxwood Talent Payment, Inc. thus eliminating your liability.  

Be sure any casting people you or your agents down the line hire understand the difference between qualified and unqualified suppliers. If YOUR suppliers or their suppliers acting as your cumulative agents  hire people on your behalf through non-covered sources as independent contractors , and they ( the models/ talent) are later determined to be employees under the law, as a CLIENT your  financial liability can extend to an audit and ALL  the taxes on ALL previous similar hires for the last 7 years plus interest.  See the VERY bottom of the independent contractor memo. ( Not highlighted)  Having someone agree to independent contractor status , even in writing , does not make it so. If the underlying practice differs from the agreement  the practice is the determining factor in deciding employee status.  This law is over 13 years old.

See below for the law.