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Law Alert
| To: | Firm Clients and Contacts | |
| From: | Niesar & Vestal LLP | |
| Date: | December 19, 2013 | |
| Re: | Attorney's Engagement Letter to Negotiate Employment Contract may be Declared to be Illegal, Void and Unenforceable for Attorney's Failure to Register as a Talent Agency under California Law |
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The Commissioner rejected Mr. Blancarte's contention that as a licensed California attorney he should be exempt from the TAA licensing requirements. The Commissioner observed that no such exception exists and that the Act deals with conduct not labels. Regardless of what a person calls himself, if he procures employment for an artist, he is working as a talent agency. In 1986 the California legislature enacted a compromise "safe harbor" provision whereby an unlicensed agent could work with and at the request of a licensed agent.
The Act's prohibition of procuring employment applies to everyone who is not a licensed talent agent. The Act also applies regardless of whether one resides in California or in another state or jurisdiction. Kyle Bluff et al. v. Paris Djon, an individual d/b/a Rockworx Entertainment (TAC 17277)(Paris Djon a New York resident); Leslie Redden v. Candy Ford Group, (TAC 13-06)(Candy Ford an out of state agency).
It is quite common for an attorney to be engaged to negotiate an employment contract for his or her client. In all probability such undertaking would fall within the definition of "procure" as used in Labor Code section 1700.4(a). So the critical analysis is in determining whether the client falls within the definition of "artist" in Section 1700.4(b). Some of the terms are straightforward but the definition includes "persons rendering professional services in…other entertainment enterprises." This description is very broad and would be subject to interpretation. From the history of the TAA and the Labor Commissioner's decisions, the results appear to favor the artists petitioning to invalidate contracts.
This article is intended to provide a general summary and should not be construed as a legal opinion nor a complete legal analysis of the subject matter. If you would like to speak with a Niesar & Vestal attorney about any matter discussed in this law alert, please contact Stephen Rush (srush@nvlawllp.com), Gerald Niesar (gniesar@nvlawllp.com) or Oscar Escobar (oescobar@nvlawllp.com).
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