Ruling Could Result in Large Penalties for Content Producers

SAN FRANCISCO — When do content producers have to pay talent?

That is the question the California Supreme Court will decide when it hears the appeal of Smith vs. Superior Court (2004) 123 Cal.App.4th 128.

In the case, state justices will decide whether models who receive flat fees for one-day assignments are “discharged” at the end of the day.

The decision could have consequences for adult productions shot in the state and trigger an obligation on the part of employers to pay the models immediately or face penalties.

The case justices will decide involves Amanza Smith who was approached four years ago about serving as a hair model at a show featuring L’Oreal products. She accepted an assignment for $500 for one day of work, but received her pay two months later.

Smith sued in Los Angeles Superior Court, seeking class action status for her claims that the failure to pay promptly constituted conversion, fraud, unfair business practices, violation of Labor Code sections requiring immediate payment upon discharge, breach of contract and negligent misrepresentation.

California’s Labor Code cause of action seeks 30 days’ wages, or $15,000, per class member, under Labor Code Sec. 203, which provides that if an employee is not paid immediately upon discharge, he or she is entitled to a penalty equal to the amount of his or her wages for the number of days that he or she is required to wait for the money, up to 30 days.

The Superior Court judge granted summary adjudication on the Labor Code claims, concluding that Smith was not “discharged,” but rather “completed her employment by its terms.”

Later, an appeal court concurred with the trial judge, who relied on standard dictionaries defining “discharge” to mean “to dismiss from employment” or to “to terminate from employment,” thus implying “an affirmative action by an employer” rather than “a passive expiration of a set term or completion of a set task.”

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

FTC Weighs Reboot of 'Click to Cancel' Rulemaking Process

The Federal Trade Commission has invited public comments on a petition to renew trade regulation rulemaking concerning negative option plans, after a federal court previously vacated a “click-to-cancel” rule aimed at making it easier for consumers to cancel online subscriptions.

New Federal Bills Aim to Repeal Section 230

Members of Congress this week introduced two bills calling for the repeal of Section 230 of the Communications Decency Act, which protects interactive computer services — including adult platforms — from liability for user-generated content.

House of Lords Approves UK Plan to Outlaw 'Choking' Content

The House of Lords, the U.K.’s upper house of Parliament, has agreed to amendments to the pending Crime and Policing Bill that would make depicting “choking” in pornography illegal and designate it a “priority offense” under the Online Safety Act.

Indiana Sues Aylo Over AV, Calls IP Address Blocking 'Insufficient'

Indiana Attorney General Todd Rokita has filed a lawsuit against Aylo, alleging that the company and its affiliates have violated both Indiana’s age verification law and the state’s Deceptive Consumer Sales Act.

House Committee Amends, Advances Federal AV Bill

A U.S. House of Representatives subcommittee voted Thursday to amend the SCREEN Act, which would make site-based age verification of users seeking to access adult content federal law, and to advance the bill for review by the full Committee on Energy and Commerce.

FSC Announces Board of Directors Election Results

The Free Speech Coalition (FSC) has announced the results of its 2026/2027 Board of Directors election.

Report: AVS Group Beefs Up AV After $1.3 Million Fine

Adult content provider AVS Group has begun to institute robust age checks on some of its websites after U.K. media regulator Ofcom last week imposed a penalty of approximately $1.3 million for noncompliance with Online Safety Act regulations, the BBC is reporting.

FSC: Federal Report Confirms Unfair Banking Discrimination Against Adult Industry

The Free Speech Coalition (FSC) today announced that a federal report on debanking has concluded that several U.S. banks engaged in discriminatory banking practices against members of the adult industry.

FSC Summit Event Schedule Announced

Free Speech Coalition (FSC) has revealed its slate of networking events and symposiums for its annual summit, set for January 15 during XBIZ 2026.

Washington AV Bill Jumps on 'Health Warning' Bandwagon

A new age verification bill in the Washington state legislature would require adult sites to post notices warning users of alleged health risks, despite a previous federal court ruling against such requirements.

Show More