Fuerza Regida Retains Seven-Year Rule Claim After Judge Dismisses Other Allegations
The clash began in 2025 when Rancho Humilde sued the regional‑Mexican group for performing without authorization. Fuerza Regida replied with a countersuit alleging that the label had withheld royalties owed under their contracts. The countersuit listed claims for unfair competition, unjust enrichment, and statutory damages—all of which the judge tossed. The band’s central argument—that the California Labor Code’s seven‑year rule (Section 2855) has already expired their obligations—was not dismissed.
California’s seven‑year rule, codified in Labor Code § 2855 and interpreted in the De Haviland case, bars the enforcement of a personal‑services contract against an employee after seven years from the start of service. It applies to exclusive recording agreements and other personal‑services contracts in the music industry.
Fuerza Regida’s contract history illustrates the rule’s complexity. The band signed an exclusive recording agreement with Lumbre Music and Rancho Humilde in 2018, a three‑year deal that began their formal relationship with the label. On December 30 2021, they entered a new agreement that included a $300,000 signing bonus and a clause that superseded the earlier contract. A settlement entered on January 1 2022 terminated the 2018 agreement and paid the band $1.8 million. In August 2025, the band amended the prior deal to extend its term to at least 2027, coinciding with a global distribution agreement with Sony Music Entertainment.
The band argues that the seven‑year clock has run continuously and uninterrupted since the 2018 agreement, so the maximum enforceable term would have expired no later than February 1 2025. Rancho Humilde counters that each later contract is a separate deal that supersedes the previous ones, and therefore the seven‑year limit should not apply to the current agreement.
Judge Vera declined to decide whether the seven‑year rule frees the band from its contract. He noted that the court had the contracts and the dates of their execution but did not have all the facts regarding the negotiation circumstances needed to determine whether there was an intent to avoid the application of Section 2855. The judge described the issue of whether the seven‑year clock resets with each new contract as “unsettled under California law.”
With the seven‑year claim still pending, the case will proceed to discovery. If the parties cannot reach a settlement, a trial is likely to follow. The outcome will clarify how California’s personal‑services rule applies to successive recording agreements in the music industry.
At present, the only unresolved question is whether the seven‑year rule applies to Fuerza Regida’s current contract. The parties are preparing for discovery, and no further statements have been issued by either side. The case remains a significant example of how California labor law intersects with music‑industry contracts.