As the entertainment industry continues to evolve, so do the laws that govern how minors are compensated for their work. With the rise of family-oriented digital content, child creators have become increasingly part of the broader social media landscape. In response, California recently amended Coogan’s Law (AB 1880) and enacted the Child Content Creator Rights Act (SB 764), which is designed to protect the financial interests of minors in the entertainment and digital media industries.
What is Coogan’s Law?
Coogan’s Law, named after child actor Jackie Coogan, whose parents squandered his multimillion-dollar earnings, was originally enacted in 1938 to safeguard the earnings of minors (unemancipated and under 18 years old) in the entertainment and sports industry. (See Cal. Fam. Code §§ 6752-6753.) The law requires that 15% of a child’s earnings from entertainment-related work be placed in a blocked trust account, often referred to as a ”Coogan account.” The employer then has 15 business days to deposit the child’s earnings into their Coogan account. This ensures that a minor’s earnings are protected and cannot be accessed by the minor or their family until the child reaches the age of 18, unless otherwise judicially approved. At present, blocked trust accounts are required for child performers in California, New York, Illinois, Louisiana, and New Mexico.
California Assembly Bill 1880: Expanding protections for minors in artistic employment
In September 2024, California Assembly Bill 1880 (AB 1880) was signed into law, significantly updating Coogan’s Law to reflect the growing influence of digital media and social platforms.
AB 1880 brings new protections for minors, regardless of whether they are earning through traditional media or online content creation.
Some of the key updates in AB 1880 include the following:
Broadening the Scope of “Entertainment Work”
Coogan’s Law applies to minors employed as actors, dancers, musicians, comedians, singers, stuntpersons, voice-over artists, performers, entertainers, or sports participants. AB 1880 expands the definition of entertainment work to include a content creator “who creates, posts, shares, or otherwise interacts with digital content on an online platform and engages in a direct contractual relationship with third parties.” Content creators include, but are not limited to, vloggers, podcasters, social media influencers, and streamers.
Mandatory Trust Accounts
Just as in traditional entertainment work, a minor who earns money from digital content must have 15% of their gross earnings placed in a Coogan account. This money is held in trust at a bank, credit union, or brokerage firm until the minor turns 18, ensuring that their earnings are protected for their future.
Increased Transparency and Accountability
AB 1880 enhances transparency by requiring greater documentation and reporting of a minor’s earnings. Employers (such as brands or social media platforms) and guardians must work together to ensure that the appropriate portion of earnings is placed into the Coogan account. This legislation also requires that employers provide written verification of the amounts paid to minors and the establishment of the trust accounts.
Senate Bill 764: Enhancing protections for child creators
Senate Bill 764 (SB 764), otherwise known as the Child Content Creator Rights Act, was signed into law on September 26, 2024, by Governor Gavin Newsom, and further strengthens protections for minors featured in family vlogger content. The law is modeled on an Illinois statute (SB 1782), enacted in 2023, and represents the latest in a nationwide push to implement more robust protections for child performers in the era of social media.
Some of the key provisions of SB 764 include the following:
Applies to Family Vloggers
SB 764 defines a vlogger as a parent, legal guardian, or family residing in California who creates content performed in California in exchange for compensation. The law does not apply to a minor who produces their own content, although a minor producing content for compensation independently may be covered under Coogan’s Law.
Broadened Protections
Senate Bill 764 requires vloggers who feature the minor in at least 30% of their content and earn at least $1,250 a month to set aside 65% of a proportionate percentage of total gross earnings in a trust account the minor can access when they reach adulthood. For example, a vlogger who is paid $20,000 by a clothing company to post a one-minute YouTube video in which the vlogger’s child is featured in 50% of the video must apportion $6,500 (i.e., 65% of 50% of $20,000) of the $20,000 gross proceeds to a trust account for their child. This is separate from Coogan protections, which only extend to child performers under an employment contract with a third party.
Reporting and Verification Requirements
SB 764 requires the vlogger to prepare a written statement, under penalty of perjury, that includes specified information relating to the trust account. Vloggers are required to maintain records, including the number of vlogs that generated compensation and the amount deposited into the trust account, and to provide them to the minor upon request.
Additional challenges
The Child Content Creator Rights Act may present financial challenges for family vloggers who incur substantial overhead expenses to produce their vlogs—such the cost of hiring videographers, editors, talent and business managers, and attorneys—since the compensation payable to their children is calculated based on gross earnings and does not account for costs related to running the vlog channel. Until the contours of these laws are tested in practice, family vloggers in states with similar laws should be aware of these new requirements and the potential consequences of failing to comply. For example, a vlogger who knowingly violates SB 764 may be liable to their child for actual damages; punitive damages; and/or the cost of action, including the child’s attorney’s fees and costs incurred in pursuing an action against the vlogger.
Prioritize compliance with child talent protection laws
AB 1880’s amendment to Coogan’s Law and the enactment of the Child Content Creator Rights Act represent significant strides in protecting the financial interests of minors in both traditional and digital media industries. It is imperative for talent and those working with minors in entertainment to familiarize themselves with these new regulations and take proactive steps to ensure compliance.