Learn Work Permits and Coogan’s with June!
Aura Casting in the San Francisco Bay Area just recently wrapped up a shoot with 20+ minors involved. Yep, you read that right! When shoots involve minors, depending on the state, that usually means work permits and Coogan’s need to be gathered or set up if the minor doesn’t already have them.
The process can seem daunting. Work permits can expire fast depending on the state, and many parents have never even heard of a Coogan account. But have no fear! Aura is here! The work permit and Coogan process is actually quite simple to walk parents through.
Work Permits
When minors are working on a production, additional paperwork and protections may be required depending on the state where the production is taking place. This can include entertainment work permits, employment certificates, and other documentation required by the state. States such as California, New York, Georgia, and New Jersey have specific requirements for minors working in the entertainment industry. Because requirements vary by state, it's important to confirm what is needed before a minor begins work.
If an entertainment work permit is required and a minor does not already have one, production may need to request an expedited permit or provide documentation to the appropriate state agency. Requirements vary by state, but this may include us or production writing an expedited letter including the minor’s legal name, scheduled work dates, production information, and signatures from the appropriate parties. The process can seem intimidating, but the paperwork is actually pretty straightforward to prepare. At Aura, we have templates and a process in place to help guide production and parents through the requirements and take some of the stress out of getting everything in order!
The most important thing to remember is to start the process as early as possible. Depending on the state, permits can require supporting documents, school records, online trainings that the minor need to complete, or other approvals, so waiting until the last minute can create unnecessary stress. A minor should not begin work until all required permits and documentation are in place.
Coogan Accounts
If you have never heard the term “Coogan account” before, don’t worry! You are not alone. A Coogan account is a special blocked trust account that is made to protect a portion of a minor’s earnings from their work on an entertainment production. They are only required in five states: California, New York, Illinois, Louisiana, and New Mexico. Coogan Law requires that 15% of a minor's earnings under certain entertainment contracts need to be set aside in a special trust account for the minor. The money is protected for the minor and can be accessed according to the requirements of the account and applicable law.
If a minor doesn't already have a Coogan account, the parent or legal guardian will need to set one up before the minor's earnings are dispursed to them. Here are a few things to note about setting up Coogan accounts:
The account must be established with a qualifying financial institution (i.e., bank, brokerage firm, savings and loan institution, or credit union, or company registered under the Investment Company Act of 1940,) that is insured by the FDIC, SIPC or NCUSIF.
The minor is the beneficiary.
The parent, guardian or court designee is the trustee.
No withdrawals are allowed until the minor turns 18, but the trustee may transfer funds.
You typically the minors social security number, birth certificate, and proof of identity.
Requirements depend on the bank, credit union or brokerage firm.
Production usually requires documentation confirming that the account has been established with the account number. Typically whoever is handling payment whether it be production or a separate payroll company will withhold the 15% and deposit it into the minors Coogan account within 15 days of hiring.
Setting up a Coogan account can feel like another confusing step in the process, especially for parents of minors who are new to working in entertainment. That's where Aura can help! We guide parents through the process, provide the information they need, and help make sure the necessary documentation gets back to production.
Our biggest piece of advice? Don't wait until after the shoot to start thinking about it. Once a minor is booked, it's important to find out what paperwork and financial documentation will be required and start the process as early as possible. Having everything ready ahead of time helps prevent payment delays.
Working with minors comes with a few extra steps, but it doesn't have to be overwhelming! Our team provides additional services to help guide parents and production through the work permit and Coogan process and make sure everyone is prepared before the shoot. Because when the paperwork is taken care of, everyone can focus on what really matters: making a great project!
Do you have a project that needs minors casting? Reach out to us today to get a quote!
