Drafting Fashion Industry Agreements

Contracts are integral to the success and smooth functioning of every industry, and fashion is certainly no exception. The unique characteristics of the fashion world – defined by a dynamic relationship between designer, producers, distributors, and technology on a global scale – means that contracts must take into account certain industry-specific factors to ensure that all parties are able to perform optimally without liability.

A large segment of workers in the fashion industry are defined as “at will” employees, meaning that they provide their paid labor and services to an employer without any specific agreement. This puts them in a state of limbo, wherein they are governed by certain company-wide policies and state and federal regulations, yet lack the sort of specific protections that may safeguard their unique ideas and skills.

Those wishing to advance their career in fashion, whether as employees or independent entrepreneurs, should always consider obtaining some sort of written agreement that will delineate clear terms,  conditions, and protections. These contracts come in a wide variety of types depending on the nature of the work, such as a consulting agreement, independent contracting agreement, or sales representation agreement. What distinguishes them is the specific kind of labor they outline (including the formal title and duties of the position) and the terms, parameters, and compensation both parties must concede to. Given the invaluable intellectual property that drives fashion – the designs, concepts, and other “intangible” creative contributions – there are other characteristics important to have in any contract drafted between parties in the industry.

For example, there are creative approval provisions that determine the rights an employee has over the work they contribute. This should cover key matters such as whether or not an employee has absolute rights over the approval or inputs made in regards to a project (and if so, to what extent or by what conditions); the scope or timeframe of granting said approval; and whether the employee also has a say over the hiring, compensation, or termination of other personnel involved in the project. In short, these provisions determine the degree of creative control given to the employee.

Matters of confidentiality and non-competition, while certainly not unique to the fashion industry, are especially important to consider given the competitiveness and rapid pace of change that defines the sector. It is important that both parties determine and understand what must be kept secret (certain designs, ideas, computer models, etc.) and to what extent and scope of time. It must also be understood what restrictions an individual will face when they consider doing similar work, or working in a competing company, once they are no longer employed by their current employer.

Whatever your goals and aspirations in the fashion industry, it is absolutely critical that you protect yourself by drafting a contract that takes into account your needs and interests, to the mutual benefit of your employer. Jurado & Farshchian, P.L. knows the ins and outs of the fashion industry, and can help draft an agreement that is tailored to the unique circumstances of both the industry and our clients. For more information, please contact us at Romy@jflawfirm.com or (305) 921-0440.

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