If your child has booked a commercial, a TV role, a modeling gig, or steady work as a content creator, California law requires more than just signing a contract on their behalf. It requires you to set aside a legally protected portion of their earnings — whether you plan to or not. This is the Coogan Law, and understanding it is essential before your child's first paycheck ever arrives.
The Story Behind the Law
The Coogan Law is named after Jackie Coogan, a silent-film child star who earned an estimated $4 million during his career — a fortune by any era's standard — only to discover as an adult that nearly all of it had been spent by his mother and stepfather. He had no legal claim to any of it. In response, California passed the original Child Actor's Bill in 1939, and significantly strengthened it in 1999 into the version still in effect today.
The law is now codified primarily in California Family Code Sections 6750 through 6753, with related work-permit requirements under Labor Code Section 1700.37. Its purpose is simple: a minor's earnings belong to the minor, not to whoever manages their career.
What the Law Actually Requires
At its core, the Coogan Law requires that 15% of a minor's gross earnings from an entertainment or sports-related contract be set aside in a blocked trust account — commonly called a "Coogan Account" — for the child's benefit. This applies whether or not the underlying contract was ever approved by a court.
A few key mechanics matter here:
- The employer withholds and deposits the funds. It's not on the parent to manually transfer money after the fact — the production company, studio, or employer is responsible for depositing the 15% directly into the Coogan Account, generally within 15 business days of the earnings being paid.
- The account must be opened in California. It has to be established at a bank, credit union, savings and loan, or a firm registered under the Investment Company Act of 1940, located within the state — unless a comparable trust already exists.
- A parent or guardian typically serves as trustee. The court will normally appoint a parent or legal guardian with physical custody of the child as trustee of the account, unless it determines someone else should serve in that role in the child's best interest.
- The money is locked until adulthood. Once deposited, no one — not the parent, not the child, not the employer — can withdraw from the account without a court order, until the minor turns 18 or is legally emancipated.
- The employer's obligation ends at deposit. Once the funds are deposited, the employer has no further duty to monitor the account. From that point forward, the trustee is solely responsible for managing and accounting for the funds.
What Happens If a Coogan Account Isn't Set Up
This is where many families run into trouble. If a parent or guardian fails to provide the employer with proof of a properly established Coogan Account — specifically, a copy of the trustee's account statement — within 180 days of the child starting work, the law doesn't simply let the requirement lapse.
Instead, the employer is required to forward the full 15% set-aside directly to The Actors' Fund of America (AFA), along with identifying information about the minor. At that point, AFA becomes the legal trustee of those funds, and the parent loses the ability to manage that portion of the child's earnings directly. Getting the account set up promptly isn't just good practice — it determines who controls the money.
Who the Law Applies To (and Who It Doesn't)
The Coogan Law's 15% set-aside applies to minors working under contracts in art, entertainment, and professional sports — think acting, voice work, modeling, dance, music, and similar fields. There is a notable carve-out: children working strictly as extras or background performers are generally exempt from the mandatory trust requirement, a distinction added after lawmakers recognized that requiring a full trust account setup for a child earning a small, occasional background-performer paycheck created more administrative burden than benefit.
The Law Has Expanded to Cover Child Influencers
For years, one of the most significant gaps in the Coogan Law was that it was written for traditional entertainment contracts — film, television, modeling — and didn't clearly reach the growing number of children earning substantial income from social media content. California has since moved to close that gap. Legislation extending Coogan-style protections to minors featured in monetized online content now requires that the same 15% gross-earnings set-aside apply when a child is a regular subject of content that generates ad revenue, sponsorships, or other compensation — a direct response to the rise of family vlogging and child-focused content creation as a source of real income.
Parents managing a child's presence on YouTube, TikTok, or similar platforms should not assume that because the income doesn't come from a traditional studio contract, it falls outside the law's reach.
Coogan Accounts and Work Permits
For traditional entertainment work, California also requires minors to obtain an Entertainment Work Permit through the state's Division of Labor Standards Enforcement before they can legally work. In many cases, proof of an established Coogan Account is a practical prerequisite to obtaining or renewing that permit — meaning the trust account isn't just a compliance afterthought, it can directly gate a child's ability to keep working at all.
How This Intersects With Family Law
For families going through divorce or separation while a child is actively working as a performer, Coogan accounts introduce issues that don't come up in a typical custody or support case:
- Trustee designation disputes. If both parents share custody, disagreements can arise over which parent should serve as trustee, or whether a neutral third party should be appointed instead.
- Interaction with child support. A minor's Coogan-protected earnings are generally treated differently than income available for support calculations, since the funds are legally the child's and inaccessible until adulthood — but questions often arise about how a working child's income affects the broader financial picture of a support case.
- Oversight after separation. Courts can be asked to review how a trustee-parent has managed a Coogan Account, particularly if there's a dispute about whether funds are being properly preserved.
Families in the entertainment industry — a meaningful part of Southern California's population — should treat Coogan Law compliance as a family law issue, not just an entertainment law formality, especially once a divorce or custody dispute is underway.
Quick Reference: Coogan Law at a Glance
| Requirement | Detail |
|---|---|
| Set-aside percentage | 15% of gross earnings |
| Governing law | California Family Code §§ 6750–6753; Labor Code § 1700.37 |
| Deposit deadline | Generally within 15 business days of payment |
| Account location | Must be established at a California-based institution |
| Trustee | Typically a parent/guardian with physical custody, unless the court orders otherwise |
| Grace period to establish account | 180 days from start of employment |
| Consequence of non-compliance | Funds forwarded to The Actors' Fund of America, which becomes trustee |
| Access to funds | Locked until age 18 or emancipation, absent a court order |
| Exemptions | Extras/background performers generally exempt |
Frequently Asked Questions
Does the Coogan Law apply to my child's YouTube or TikTok earnings? It can. California has extended Coogan-style protections to minors who are regularly featured in monetized online content, not just traditional film and TV contracts. If your child's channel or content generates ad revenue or sponsorship income, it's worth evaluating whether a Coogan Account is required.
What happens to the money once my child turns 18? Once the minor reaches 18 (or is legally emancipated), the funds in the Coogan Account become fully accessible to them directly, without further court involvement, absent unusual circumstances.
Can I use a Coogan Account from another state if we relocate to California for work? Generally, no — the account must be established at a California-based institution unless a comparable trust has already been set up that satisfies the statute's requirements. It's worth confirming compliance before your child begins work in the state.
What if my child works only occasionally as a background performer? Background and extra work is generally exempt from the mandatory 15% set-aside requirement, though it's worth confirming your child's specific role and contract terms with an attorney if there's any ambiguity.
Minella Law Group Can Help
Whether you're setting up a Coogan Account for the first time, navigating a custody dispute involving a working child, or unsure how your child's entertainment income fits into a divorce, our family law attorneys can help you sort through the details.
📞 Call Minella Law Group today at 619-289-7948 to schedule a confidential consultation.
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Disclaimer: This article is for informational purposes only and does not constitute legal advice. For personalized guidance on your case, contact a licensed California family law attorney.
Frequently Asked Questions
Does the Coogan Law apply to my child's YouTube or TikTok earnings?
It can. California has extended Coogan-style protections to minors who are regularly featured in monetized online content, not just traditional film and TV contracts. If your child's channel or content generates ad revenue or sponsorship income, it's worth evaluating whether a Coogan Account is required.
What happens to the money once my child turns 18?
Once the minor reaches 18 (or is legally emancipated), the funds in the Coogan Account become fully accessible to them directly, without further court involvement, absent unusual circumstances.
Can I use a Coogan Account from another state if we relocate to California for work?
Generally, no — the account must be established at a California-based institution unless a comparable trust has already been set up that satisfies the statute's requirements. It's worth confirming compliance before your child begins work in the state.
What if my child works only occasionally as a background performer?
Background and extra work is generally exempt from the mandatory 15% set-aside requirement, though it's worth confirming your child's specific role and contract terms with an attorney if there's any ambiguity.
