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At Wrapbook, we pride ourselves on providing outstanding free resources to producers and their crews, but this post is for informational purposes only as of the date above. The content on our website is not intended to provide and should not be relied on for legal, accounting, or tax advice. You should consult with your own legal, accounting, or tax advisors to determine how this general information may apply to your specific circumstances.
Some may assume that adherence to Coogan Law requirements is entirely up to a child actor's parents. To be honest, that assumption is partially correct. After all, a producer doesn't have to ask, "Can a Coogan Account be closed?" or "Who is the trustee on a Coogan Account?"
A producer's role in Coogan Law is considerably less complicated than that of a stage parent, but it remains critical in ensuring that the law works as intended.
When working with a child actor, 15% of all their gross earnings must be deposited in a special Coogan Bank Account. The deposit has to be made within 15 days of the employment, and the producer is charged with that responsibility.
However, with Wrapbook, a producer can easily divide payments into a Coogan account by identifying minors when setting up a project.
Before shooting, a producer should perform the following as far in advance as possible.
The first step in the process is to get the child actor's Coogan Bank Account information from their parent or legal guardian.
This should consist of:
If the child actor is already a set veteran, getting this information will be no problem. Their parent or legal guardian might even send it to the producing team before being asked for it.
However, if the child (or the parent) is still new to the process, some guidance might be necessary. In that case, a producer must communicate their timeline and point the legal guardians to the right information.
As with all actors, check if they’re in SAG as well.
As soon as the legal guardians have passed along the account details, Coogan law requirements state that the producer must provide the parents with a receipt agreeing that they did receive that information.
This rule prevents more nefarious producers from playing dumb and “misplacing" the funds for their child actor's Coogan Account. The provision is also a concrete gesture to close the first step in the process. Now, the responsibility is on the producer's shoulders.
Once a producer has the child actor's Coogan Account information, depositing the required 15% of their gross earnings is time.
If the production team handles payroll directly, then a person from that team must make all deposits into the Coogan Account. Depending on the child actor's contract, a single direct deposit of funds might be all that is necessary.
However, the producer must update the amount if the child actor's earnings increase during production.
Thus, a producer may prefer to make the deposits paycheck to paycheck. Either way, the producer must communicate directly with the bank to let them know these payments are being made under the Coogan Law.
However, if a production company works with a payroll company, most of the work will fall on its shoulders. That dramatically simplifies the process of adhering to the Coogan Law requirements.
All a producer must do is communicate with their designated payroll company representative. Entertainment payroll companies deal with Coogan Accounts all the time. It's not unusual; they will generally have a standard procedure in place.
Payroll companies, like Wrapbook, make it easy to input minor statuses when onboarding.
A producer using Wrapbook will have a clear visual of all actors under 18 when using the software to onboard them onto a digital production. A producer can easily divide payments into a Coogan account once the minors are identified during onboarding.
The most essential step will be to provide the payroll company with the child actor’s Coogan Account information. Still, extra steps or paperwork may vary from company to company.
For instance, a child actor's parents or legal guardian may be required to sign a separate Coogan Account Direct Deposit Agreement for the payroll company’s records.
Using an approved SAG payroll company is mandatory if working with SAG talent.
Once 15% of the child actor's gross earnings are in the Coogan Account, the producer's job is done.
A Coogan Account is necessary for any child actor seeking employment in the modern production ecosystem. Without proof of a parent or legal guardian having opened a Coogan Bank Account in their name, a child actor cannot secure a basic work permit.
Subsequently, a producer will be unable to use them. A Coogan Account or Coogan Bank Account is a kind of trust; thus, it's frequently referred to as a Coogan Blocked Trust Account or a Coogan Trust Account.
A trust is a three-party arrangement in which a “trustor” agrees to give the “trustee” the ability to hold and control assets or property for the “beneficiary.” Once a beneficiary meets certain agreed-upon requirements, the assets or property should pass directly into their possession.
For a Coogan Account, a parent or legal guardian (the trustor) gives a bank (the trustee) the right to hold 15% of the gross earnings of the child actor (the beneficiary). The funds are released once the child turns 18, or the majority age in that state.
Consequently, opening a Coogan Account is a prerequisite for adherence to other child actor laws. It guarantees that all child actors are shielded from total earnings mismanagement.
The rise of social media and “influencers” that followed in its wake created a whole new way for children to make money from their presence on screen.
On August 11, 2023, Illinois became the first state to ensure that children shown on social media are paid for their work. As of July 1, 2024, adults who use “the likeness, name or photograph" of a minor in paid online content to set aside a portion of the earnings in a trust.
How much a parent has to place into the trust depends on how much the child appears in the content. For example, if the child is in 100% of an influencer's videos, at least half of the earnings must be set aside.
The law also gives child influencers the right to request a permanent deletion of any video that features them.
Currently, the statute only applies to video content made in Illinois that generates more than 10 cents per view. Similar laws are expected in other states as concerns surrounding child exposure and exploitation on social media grow.
It's important to note that not all states require a child actor to maintain an open Coogan Account. California, Illinois, Louisiana, New Mexico, and New York are the only states with laws analogous to the Coogan Law. They have significant idiosyncrasies in the specific rules by which a Coogan Account operates.
Producers should know basic Coogan Law requirements in any region where they work.
Child actor laws can be confusing outside states like California, which have clear regulations. Contact the state's Labor Department to clarify any lingering questions regardless of location.
In California, the birthplace of the Coogan Law, a Coogan Account is a requirement for a child actor's employment. Parents or legal guardians must also open their child's Coogan Account with a California bank.
Parents of children who work in Illinois must open a Blocked Trust Account with any bank in any state. A minimum of 15% of the child actor's gross earnings must be deposited into the account. This requirement does not extend to child extras or background actors. For more information, check out the Illinois General Assembly’s website.
In Louisiana, a Coogan Account is required, but it can be opened with any bank in any state.
In New Mexico, a Coogan Account is only required if a child actor earns more than $1,000 per employment contract. It can also be opened with any bank in any state.
In New York, parents or legal guardians must open what is known as a UTMA or UGMA Compliant Trust Account. These trusts are similar to a Coogan Account in their regulations. They can be opened in any state, provided they meet the UTMA or UGMA requirements.
Producers must honor the legacy of the Jackie Coogan Law and do their part to protect children both on screen and on stage.
Do you have any lingering questions about the Coogan Law? Reach out to us to get the correct info from a payroll expert. For more industry-specific child labor information, look at our Producer's Guide to Child Actor Laws.
No, Coogan's law is not a federal law. Each state has its version of Coogan's law, designed to protect child actors.
Only California, Illinois, Louisiana, New Mexico, and New York have laws analogous to Coogan's Law.
Child actors can only access the funds when they turn 18 if they are legally emancipated or by a court order.
The Entertainment Community Funds tracks unclaimed Coogan funds and tries to send them to their recipients. You can search your name here to find out if there are any unclaimed funds.
Most banks will allow you to set up a Coogan Account. However, not all do. Contact your bank and inquire whether they will let you set up a Coogan Account.
Hiring child actors is a unique experience when compared to working with other performers. With underage performers often comes the addition of stage parents, studio teachers, and child labor regulations, all which producers must carefully navigate.
And in this article, we tackle one of the most common circumstances that comes with hiring child actors: the Coogan Law.
Officially known as the California Child Actor’s Bill, the Coogan Law exists for the same purpose as other child actor protection laws that a producer may encounter throughout the production process. This law prevents the exploitation and abuse of working minors within the bounds of their employment on a set.
However, the Coogan Law has nothing to do with traditional labor questions of how long children can work or how much kid actors get paid.
Instead, it fills a crucial gap among other child actor laws by requiring that a percentage of every child actor's earnings be shielded in a trust – a Coogan Account – to which they'll gain access once they reach adulthood.
The Jackie Coogan Law ensures the financial well-being of child actors by mandating that their employer set aside 15% of a child actor's gross earnings in a Coogan Trust Account where it can be monitored – but not withdrawn – by a legal guardian until the child reaches legal maturity.
In other words, Coogan Law requirements prevent a child actor's legal guardian or parent from intentionally or unintentionally mishandling the actor's earnings before they are old enough to access those earnings.
One important disclaimer to note is that if the child is an extra or background actor, this 15% requirement is waived. For example, if your child actor is an extra making around $100/day, depositing 15% of that $100 is no longer necessary.
The Coogan Law is short for the Jackie Coogan Law, and it’s named for John Leslie Coogan, an actor and comedian extraordinaire whose talent made him one of the first child stars in film history.
Born in 1914, Charlie Chaplin discovered Jackie Coogan at a vaudeville show when he was only five years old. Two short years later, Chaplin cast Coogan in his classic silent-era feature film, The Kid, an act that would make the child actor a household name virtually overnight.
Coogan's fame grew so intensely that his image was used for merchandising products, and by the mid-1920s, Coogan had established the archetypical dream every child actor would follow.
However, Coogan discovered in 1938 that his mother and stepfather had spent his estimated $3 to $4 million in child actor earnings without his knowledge. He was forced to sue, recovered only a small portion of the sum, and fell into financial hardship.
Coogan’s legal battle brought to light the vulnerability of child actors and ultimately resulted in the 1939 enactment of the Jackie Coogan Law.
