Coogan's Finance

Coogan's Law, specifically the California Child Actor's Bill, revolutionized the management of earnings for young performers. Enacted in 1939, its primary aim was to prevent the exploitation of child actors and safeguard their financial future, learning from the experiences of Jackie Coogan himself.

Before Coogan's Law, earnings of child performers often went directly to their parents or guardians, with little to no guarantee of the child ever seeing that money. In Coogan's case, his immense childhood earnings, estimated at $3-4 million (a substantial fortune at the time), were largely dissipated by his mother and stepfather. This devastating experience ignited the movement for legislative reform.

The core of Coogan's Law mandates that a portion of a child actor's earnings be placed in a blocked trust account, often referred to as a "Coogan Account." This account is typically managed by a financial institution and requires court approval for withdrawals, ensuring the funds remain untouched until the child reaches the age of majority, generally 18 years old.

Specifically, the law requires employers to set aside at least 15% of a child's gross earnings into this trust account. This percentage provides a guaranteed safety net for the young performer, offering financial security as they transition into adulthood or potentially face career changes.

Beyond the mandatory trust account, Coogan's Law also requires that a child actor's employment contract be approved by a court. This process ensures the terms of the contract, including working conditions and compensation, are fair and in the child's best interest. The court appointment of a legal guardian ad litem further protects the child's interests during contract negotiations and throughout the duration of their employment.

The original Coogan's Law primarily addressed film and television work. However, it has been amended and broadened over the years to encompass various forms of entertainment, including live performances, modeling, and even certain types of online content creation. Furthermore, other states have adopted similar legislation, extending the protection of child performers beyond California's borders.

While Coogan's Law has been instrumental in protecting the financial well-being of countless young actors, it's not without its limitations. The 15% contribution, while crucial, may not be sufficient to sustain a comfortable lifestyle for those whose earnings are modest. Also, managing the remaining 85% of the child's earnings still requires careful planning and responsible management by the parents or guardians. Despite these considerations, Coogan's Law remains a landmark piece of legislation, a vital safeguard ensuring that child performers receive at least a portion of the financial rewards they earn for their work.