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 © 2026 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

Ofcom Fines Kick Online Entertainment $1 Million for AV Noncompliance

U.K. media regulator Ofcom on Thursday fined Kick Online Entertainment 800,000 pounds (more than $1 million) for failing to implement age checks as required for compliance with the Online Safety Act.

FSC Details Legislative Outlook for 2026

The Free Speech Coalition (FSC) has laid out the legislative outlook for the industry in 2026.

Judge Dismisses NCOSE-Backed Suits Against Adult Sites Over Kansas AV Law

A federal judge on Tuesday dismissed lawsuits brought against two adult websites in Kansas for alleged violations of the state’s age verification law.

Aylo/SWOP Panel Spotlights Creators' Struggle for Digital, Financial Rights

Aylo and Sex Workers Outreach Project (SWOP) Behind Bars presented, on Tuesday, an online panel on creators’ rights, debanking and deplatforming.

AV Bulletin: Canada, Italy, Australia Updates

Since the Supreme Court’s decision in Free Speech Coalition v. Paxton, more state age verification laws have been enacted around the United States, as well as proposed at the federal level and in other countries. This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Virginia 'Porn Tax' Bill Delayed Until 2027

A Virginia House of Delegates subcommittee on Monday voted to postpone until next year consideration of a bill that would impose a 10% tax on the gross receipts of adult websites doing business in that state.

Virginia Becomes Latest State to Weigh 'Porn Tax'

The Virginia House of Delegates is considering a bill that would impose a 10% tax on the gross receipts of adult websites doing business in that state.

UPDATED: Arcom Threatens to Block, Delist 2 Adult Sites Over AV Violation

French media regulator Arcom has sent enforcement notices to the operators of two adult websites that the agency says have failed to implement age verification as required under France’s Security and Regulation of the Digital Space (SREN) law.

Final Defendant Sentenced in GirlsDoPorn Case

Former adult producer Doug Wiederhold, previously a business partner of GirlsDoPorn owner Michael Pratt, was sentenced on Friday in federal court to four years in prison for conspiracy to commit sex trafficking.

Show More