Seven-Year Statute
The FAIR Act to Repeal California’s ‘Seven-Year Statute’ Amendment Fails in the State Senate
The major record companies emerged victorious as the Free Artists From Industry Restrictions (FAIR) Act failed to pass out of the California State Senate’s Judiciary committee on Tuesday (June 28) in Sacramento. The Fair Act, also known as AB Bill 983, received four votes, two short of the six needed to reach a majority from the 11-member committee. The bill was the latest effort to repeal a 1987 amendment to California’s “Seven-Year Statute” (a.k.a. California Labor Code Section 2855). That amendment allows record labels to sue artists for damages (including potential lost revenue) if they leave after seven years but before delivering the required number of albums in their contract. Though the committee addressed the bill early in the afternoon, it took until the conclusion of the 13...
FAIR Act Bill to Repeal Amendment to ‘Seven-Year Statute’ Up for Vote in California Assembly
Artists and labels are headed for a face off Wednesday (March 30) in Sacramento as the California State Assembly holds the first hearing and vote on repealing an amendment to the state’s “Seven-Year Statute” following February’s re-introduction of the Free Artists From Industry Restrictions (FAIR) Act. Held by the Assembly’s Committee on Labor and Employment, sources from both sides expect the vote to pass. If it does, the bill would then move to the Assembly’s Committee on Arts, Entertainment, Sports, Tourism and Internet Media for an April 19 hearing and vote. Assembly Bill 2926 builds on California Labor Code Section 2855. Enacted in 1944 after the judgment in actress Olivia de Havilland’s lawsuit against Warner Bros. Pictures, 2855 limits personal services contracts for state residents...
