Coogan Law, part IV: 15% Set-Aside

When the Superior Court ratifies the minor's entertainment contract, it is protecting the employer of the minor from later being deprived of the benefits of the contract. But the Coogan Law also provides for a protection for the minor by requiring that 15% of the minor’s compensation be set aside and put into a trust account for their benefit. The funds will remain safely in the trust account and mature there until the minor reaches the age of majority. This forced savings plan is designed to protect those funds from being squandered by the minor him or herself, or, more likely, by the minor’s parents.


California Family Code

Section 6752(b)(1) . . . the court shall require that 15 percent of the minor's gross earnings pursuant to the contract be set aside by the minor's employer in trust, in an account or other savings plan, and preserved for the benefit of the minor in accordance with Section 6753.