It's a Matter Of ‘Trust’
by Paul Petersen

Companies which withhold Coogan Trust payments for any reason other than the failure of the Parent/Trustees to notify their child’s employer of that account’s location and access code within the specified “seven days commencing with the start of employment” are running the risk of serious penalties.

The National Labor Relations Board says you have until the next pay period to pay a person’s wages. Union rules only allow for 15 days. There is no statute of limitations at the NLRB. Fines may be calculated for each day payments are late and penalties may accrue as well.

For example, telling a family that the Coogan set-aside will not be forwarded to the Coogan Account because the company is awaiting Court Approval is an evasion of the Revised Coogan Law.

Under the Revised Coogan Law there is no requirement for Court Approval. 15% of the Gross income has to go to the Coogan Account no matter what. No exceptions.

Remember what Court Approval really means. A Court Approved contract cannot be “disaffirmed” by the child when they become an adult. The only “protection” is for the company. California Law requires that 15% of the minor’s income go into a Coogan Account, period. Waiting on a Court Date AND withholding Coogan Trust money is a shameful practice. Companies that think they can get away with this will find their names in Lights…big time. Cheating a child has a way of inflaming the public.

For any company to claim that Court Approval is the reason for the Coogan’s deposit delay is absurd and will not be tolerated. It is the child’s money. No corporation can justify holding a child’s trust money (and making interest money on “the float”).

Unfortunately, a few major companies and several smaller production entities think they can continue to “hold” Coogan Trust money until their Court Date, particularly in the world of non-union young performers.

Fair warning: Whatever else you do, friends, make sure that Coogan Trust payments are made promptly. Failure to do so will certainly result in legal action. The NLRB only needs two names to launch a class action lawsuit on behalf of California’s professional children. A company that risks public exposure and that kind of sanction doesn’t deserve to be in business. It will be the pleasure of A Minor Consideration to grease the skids toward oblivion for any company that thinks they can get away with the exploitation of children.

The children earned their money. Pay it.

Paul Petersen