Bill Text: CA AB983 | 2021-2022 | Regular Session | Amended
Bill Title: Employee obligations: exclusivity options.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed - Dead) 2022-06-23 - From committee: Do pass and re-refer to Com. on JUD. (Ayes 3. Noes 1.) (June 22). Re-referred to Com. on JUD. [AB983 Detail]
Download: California-2021-AB983-Amended.html
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Amended
IN
Senate
June 14, 2022 |
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Amended
IN
Senate
May 05, 2022 |
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Amended
IN
Senate
June 15, 2021 |
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Amended
IN
Assembly
April 12, 2021 |
CALIFORNIA LEGISLATURE—
2021–2022 REGULAR SESSION
Assembly Bill
No. 983
| Introduced by Assembly Members Kalra and Eduardo Garcia |
February 18, 2021 |
An act to amend Section 2855 of the Labor Code, relating to employment.
LEGISLATIVE COUNSEL'S DIGEST
AB 983, as amended, Kalra.
Employee obligations: exclusivity options.
Existing law, except as specified, prohibits enforcement of a personal service contract beyond 7 years from the commencement of service under the contract. Under existing law, an employee who is a party to a contract to render personal services in the production of specified phonorecords is prohibited from invoking this provision without first giving written notice to the employer that the employee, from and after a specified date, will no longer render service under the contract by reason of the above provision. Existing law specifies that a party to a contract to render personal services in the production of specified phonorecords may still pursue an action for certain damages.
This bill would authorize any music talent who is a party to a contract to render personal services in the production of specified phonorecords
to invoke that limitation by giving written notice and paying a third party any contractual advances actually paid by the third party, as specified. The bill would repeal the provisions related to damages.
This bill would prohibit a contract for the exclusive personal services of a music talent, as defined, from containing a term that includes option periods that extend more than 12 months after the initial commercial release of the applicable music product. The bill would authorize a music talent, if their option has not been formally exercised within that time period, to terminate at any time their personal services agreement by sending notice to the contracting party. The bill, if a music talent willingly renegotiates an existing recording contract with a record company, would deem a new 7-year period to commence on the execution date of such renegotiated recording contract, if it meets prescribed criteria.
This bill would prohibit the waiver of any of its provisions in an individual contract negotiation, a collective bargaining agreement, or other agreement. The bill would provide that it applies to existing and future recording agreements and employment contracts. The bill would provide that it voids any provision in a contract that would deprive an employee or music talent of its protections.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 2855 of the Labor Code is amended to read:2855.
(a) For purposes of this section:(1) “Music product” means a phonorecord or sound recording, as defined in Section 101 of Title 17 of the United States Code.
(2) “Music talent” means a person engaged in the creation of music product.
(3)“Separate royalty account” means a new royalty account which is in no way connected or cross-collateralized with the music talent’s existing royalty account.
(b) Except as otherwise provided, a contract to render personal service, other than a contract of apprenticeship as provided in Chapter 4 (commencing with Section 3070), shall not be enforced against the employee beyond seven years from the commencement of service under it. Any contract, otherwise valid, to perform or render service of a special, unique, unusual, extraordinary, or intellectual character, which gives it peculiar value and the loss of which cannot be reasonably or adequately compensated in damages in an action at law, may nevertheless be enforced against the person contracting to render the service, for a term not to exceed seven years from the commencement of service under the contract. If the employee voluntarily continues to serve under the contract beyond that time, the contract may be referred to as affording a
presumptive measure of the compensation.
(c) Notwithstanding subdivision (b), any music talent who is a party to a contract to render personal service in the production of phonorecords in which sounds are first fixed, as defined in Section 101 of Title 17 of the United States Code, may invoke the provisions of subdivision (b) by doing both of the following:
(1) Giving written notice to the party to whom such personal services are rendered that the music talent will no longer render service under the contract by reason of subdivision (b).
(2) Paying the third party an amount equal to the contractual advances actually paid by the third party to the music talent that are
directly and solely related to phonorecords that have not been received by the third party, provided that the amount shall be credited to the music talent’s existing royalty account.
(d) (1) A contract for the exclusive personal services of a music talent shall not contain a term that includes option periods that extend more than 12 months after the initial commercial release of the applicable music product.
(2) If a music talent’s option has not been formally exercised within the time period specified in paragraph (1), a music talent, at any time, may terminate their personal services agreement by sending notice to the contracting party.
(e)If a music talent willingly renegotiates an existing recording
contract with a record company, a new seven-year period, as described in subdivision (b), shall be deemed to commence on the execution date of such renegotiated recording contract, if the renegotiated contract meets the following criteria:
(1)The renegotiated contract provides for a separate royalty account for the music product delivered by the music talent during the term of the renegotiated contract.
(2)The renegotiated contract, both financial and otherwise, provides a material improvement from the existing recording contract.
(f)
(e) No part of this section may be waived in an individual contract negotiation, a collective bargaining agreement, or other agreement.
(g)This section shall apply to existing and future recording agreements and employment contracts.
(h)
(f) Any provision in a contract
that would deprive an employee or music talent of the protections of this section shall be void.
