• How many unions govern production work?

There are many unions that govern production work, but the unions with which commercial producers are most involved are the Screen Actors’ Guild (SAG) and the American Federation of Television and Radio Artists (AFTRA).

   SAG was founded in Hollywood in 1933. SAG is a national union with uniform national production contracts and a few offices in key production centers.

   AFTRA was originally formed by 146 radio performers in Los Angeles and New York in 1937. At that time, it was known as AFTRA, the American Federation of Radio Artists. In 1950, AFTRA merged with the Television Authority and became AFTRA. Unlike SAG, no specific job history is necessary to join AFTRA, hence, it is called an open union. AFTRA, as the name implies, is a national federation of chapters called locals.

   Although the AFTRA offices are located in certain cities, they may have jurisdiction over a much larger geographic area. It’s important to know in which Local you will be producing because the local where the talent physically performs the work is considered the place where the spot is legally produced. In addition to enforcing the standard national union contracts, such as the Television and Radio Commercials Code, many locals have local contracts designed to encourage the local production industry to produce in and hire local talent.  These codes are called made-in/played-in codes.

   Throughout these FAQ's, the primary focus is on the rates and language of the SAG and AFTRA National Television Recorded Commercials Contract and the AFTRA Radio Recorded Commercials Contract. But the reader should bear in mind, especially when planning a production, that for almost every rule or cost in the national contract, many AFTRA locals may offer lower rates or less restrictive rules in their local made-in/played in codes.

   In addition to differing organizational and geographic jurisdictions, the unions may have different contract jurisdictions. For example, AFTRA has exclusive jurisdiction over all radio production. SAG has exclusive jurisdiction over commercials shot on film. Both unions have shared jurisdiction over commercials shot digitally or on tape.

   As in any organization, the most financially vested members of the organization tend to be more active. As a result, the talent representatives on the national negotiating committees tend to be dominated by “coast” talent. The perceptual differences between major market talent and mid-market talent can be quite substantial. But because the majority of the members live in the major markets, they usually hold sway in contract approval votes. AFTRA generally more closely reflects local economic conditions and approaches to rules. In general, don’t expect SAG to cut any slack on anything.

• How does a Local spot differ from a National spot?

A local spot is one that is made-in and plays only in certain Local (usually AFTRA) jurisdictions. When you produce a made-in / played-in spot, you may be able to take advantage of special union rules and reduced rates. If the spot is going to air in any market outside of the local, the rates and rules revert to the standard national contracts. It should also be noted that on questions where the local codes are silent, the national codes take precedence.

   Although it is reiterated in the union codes, most state laws stipulate that the work is actually performed where the talent is located when they do the performance. So if you are doing a remote VO and the talent is in Chicago - the production is being done in Chicago. Therefore, your production won’t be eligible for made-in / played-in and falls under national union rules.

   If a remote creates a national spot, all cast members in the same performance category get national scale. For example, if there are two voices on a spot, and one Local VO performer is recorded in Pittsburgh and the other is recorded in Chicago - both performers get national scale. The same applies to the on-camera performers.

• How do the unions get members?

When an entity wants to hire union talent, the union requires that some party to the production serve as a SIGNATORY, i.e. a company or individual that has signed the code and agrees to abide by and enforce union and civil codes governing the production.  A Signatory can only hire individuals who are or will become members in good standing with the union.

   The union codes incorporate provisions of the Federal Taft-Hartley and other government labor acts and regulations. The Act governs all union members in the U.S., not just talent. The wording of the Act, in regard to union membership itself, is extremely confusing. But, it essentially boils down to this.

   A performer can do their first union job without having to join the union. Then for the next 30 days they can do a zillion more union jobs still without having to join the union. After the 30^th day they must join the union before doing their next union job. When a talent does their first union job they are said to be Taft-Hartley’d.  After the 30^th day, they are said to be a must-join.

   AFTRA follows the Taft-Hartley Act. But SAG has even more restrictive rules requiring the performer to have appeared in three principal roles.

The key difference is that, under union codes, a union performer can work at no less than SCALE. Scale is the minimum amount for which a union member can agree to be employed. It is also the minimum amount that a signatory producer can offer a union performer for a given job.

   There are no set minimum pay scales, residuals or industry working rules for non-union talent. But, they are subject to applicable civil codes such as; minimum wage, overtime, child labor laws, working around hazardous substances, notification of rights and benefits, etc. As the employer, the producer may also be liable for any damages to person or property and may be held liable for sexual harassment, discrimination or other violations. Payment usually buys-out the performer’s work in perpetuity and there is no exclusivity. 

   The talent agent commission for union work is usually limited by the union to10% of wages. Depending on the union jurisdiction, the commission may be added to (above) scale and/or taken from the performer’s wages (Off-Scale). 

   The commission for non-union talent is usually 20% taken from the talent’s wages and an additional 20% service charge billed to the producer.  Note: Under IRS regulations, commissions paid by the performer to the agent are taxable and must be incorporated into wages. Service charges are not subject to taxes.

Also known as Professional Recognition, Preference of Employment is a commitment by the producer to give hiring priority to professional performers. Professional performers are those who have worked at least once within the last three years in the entertainment industry. The entertainment industry also includes stage, nightclub and the like. The intent of preference of employment is to encourage the industry to support performers who have demonstrated that they are trying to grow professionally.  In mid-market or small market studio zones the union may waive certain preference of employment provisions because the talent pools are smaller.

   Hiring union members, who are not in good standing with the union, is a violation of preference of employment and can result in a union fine. Preference of Employment applies 100 miles (more in some cities) from the center of the designated studio zones. Persons excluded from Preference of Employment are:  

• Persons who portray themselves,  

• Military personnel where government restrictions would prevent the use of civilian personnel, 

• Persons having special skill abilities or special or unusual physical appearances where such skills, abilities or appearance are not reasonably or readily available to the producer through the usual industry hiring practices.

   The first employment within the studio zone of a person whom the producer represents in writing to the union has 

 a.  had sufficient training so as to qualify for a career as a professional       performer and,

 b.  intends to pursue a career of a professional performer and intends to be available currently for employment in the industry.

The union security clause of the union codes requires that performers be members in Good Standing with the union.  “Clearance” is the method by which the union enforces union security.  Before talent can be employed on a union job, the cast must be cleared by the union. This means that they must be in good standing (dues paid up, not a must-join, etc). All that you have to do is fax to the union the name and social security number of the potential cast members. The union will reply quickly, usually in a matter of minutes. If any of the performers are not in good standing you cannot hire them. In the lingo of the “biz” the whole clearance process is called “Doing Station 12s.”   

The Union Standards Clause requires that signatory producers not utilize commercials or footage from other productions that have not been done under union contract. The union will grant a waiver in this regard if the producer can demonstrate that the non-union performers have been or will receive substantially the same wages and other economic benefits that would have been paid if the production had been done under union contract. Needless to say, this section assumes the producer has also obtained the appropriate legal rights and clearances for use of the material regardless of whether the footage was or was not done under union contract.

Talent is the generic term applied to any performer(s) in a production. In union productions they are given specific terms to describe their individual range of services to the production. Over the years, these terms have been adopted by the industry even when discussing non-union talent.

Unless they are just speaking “omnies,” anyone who speaks a line or more of dialogue and/or is identifiable and/or is in the foreground, and/or is identified with the product or service and/or illustrates or reacts to the off or on-camera message is a principal.  

   In addition, pilots, stunt persons, stunt drivers, Santa Clauses, clowns in proprietary make-up who demonstrate or illustrate a product/service, puppeteers, mimes, singers, dancers and others may be principals. Featured foreground performances by Specialty acts are also principals.  

·        True testimonials are exempt from the preference of employment provisions of union contracts. However, on the request of the union, the producer must supply documentary evidence establishing that the commercial is a testimonial or endorsement commercial necessitating the use of the actual persons giving the testimonial or endorsement.

·        Political candidates, officeholders and actual employees performing their normal and customary employment duties, company executives and officers and professional consultants can also be waived, upon approval by the union, from the preference of employment provision.  Regardless of whether or not the production is union or non-union, it is always wise to obtain a talent release and to provide some small financial consideration to these performers so that the producer is protected from infringement claims.

·        It isn’t necessary for a stunt person to be seen and identifiable in order to be classified as a principal. It is only necessary that the stunt be identifiable.

·        Pilots of any type of aircraft are principals if, at the direction of the producer, their flying or taxiing demonstrates or illustrates a product or service or illustrates or reacts to the on or off camera message.

·        Unless a specific waiver is granted, all principals – even testimonials, hidden camera, nonprofessionals, minors etc. - receive full benefits of the contract.

   The first three on or off- camera singers / dancers are considered principals.

Off-Cam principals are better known as Voice Over artists. Solo and duo voices and singers are treated as principals and receive holding and residuals.

Group is the term used to describe four or more dancers or singers. They are not extras and are subject to different payment schedules and rules.

Extras are performers, or body-parts models such as hand models, who support but are incidental to the commercial message. They do not speak and, unlike principals, extras’ services can be acquired for unlimited use for a single payment. Under national and local codes, extras are paid at the unlimited use fee unless specifically told otherwise at the time of booking. An extra does not have to be paid any additional compensation at the end of the commercial’s maximum use period. The unions generally allow fairly liberal preference of employment leeway with extras who are not in a studio zone.

Under national and local commercials codes there are five types of extras:

General Extras:  These are your garden-variety extras.

Crowd Work (directed) Extras: The first 40 extras must be union. Over 40 may be waived by the union on request.

Undirected Crowds:  (public events) more than 1000 people, waived on request.

Undirected Street Scenes: Waived on request. Other than a long establishing shot, the camera must keep moving; the “passers-by” may not be staged; the public cannot be told a commercial is being shot; actors may not interact with the public; no sound recording of public except wild or queue tracks; and, no lighting except on actors or paid extras in running shots.

   Hand models are considered extras.

The spot type, or category, really pertains to the type of media buy. These types generally all use the same basic rules in the broadcast code but there are some subtle contract differences that can cause problems if not taken into account.

   There are different types of spots that vary according to the media buy. Here’s a description of the most common.

·        Demo: Also called a non-air spot. It’s used to demo a concept, pitch a client, etc. In some AFTRA locals, a demo can be upgraded to an air spot with the demo session fee credited to session and use. National demos, if upgraded to air spots, are treated as new spots for purposes of holding and use fees.

·        Test: This spot will usually air in a few markets to test market a new product or service. It is usually priced as a wild or cable spot.

·        Wild: A wild spot airs on broadcast stations in different markets without regard to any particular TV network. A network is two or more stations that are interconnected. A wild spot is used independent of any program or is used on local participating programs. All other uses of a commercial, including hitchhikes and cow catchers, are program uses.

·        Dealer: A dealer spot is one in which a manufacturer of a product or service creates ads which are then sent to distributors around the country. The distributors then actually buy the time, and customize the spot, for use at the local level.

   There are two categories of Dealer Spots:

Dealer A spots are used when the manufacturer/franchisor doesn’t own the dealerships and the dealer or dealer association buys the media. Type A Dealers are independent companies that offer a product or service for sale to the public at retail and in which the company, the manufacturer or distributor has no substantial ownership interest or control.

Dealer B spots are used when the manufacturer/franchisor does own the dealerships. The commercial is made and paid for by the national manufacturer or distributor and the commercial is delivered to a chain of local retail stores or service outlets that are owned and operated by the national manufacturer or distributor. The commercial can only be telecast as a wild spot or as a Class B or Class C program commercial and the time paid for by the local retail stores or service outlets. The commercial can only advertise the product or service under the brand or trade name of the national manufacturer and the commercial can only be used by its own retail stores or service outlets.

   Within each category there is a tiered payment structure depending on whether or not New York City is part of the media buy. When a dealer falls under the category of both A and B, and the commercials are to be telecast for both, the performers receive payment for both.

   The use cycle on a Dealer Spot begins 15 days from the date of first delivery of the spot to a dealer or within 6 months of the job date whichever comes first. Because of the long uncompensated “holding period” you MUST inform principal performers PRIOR TO BOOKING that it is a Dealer Spot, and they must give their consent, or you cannot use the spot as a Dealer Spot.

·        Program: A program spot is one in which the spot is only going to air on networks or be inserted into certain network TV or radio program. For example, an ad agency may run a spot on CSI for 13 weeks.  A Network is defined as two or more interconnected stations. There is a special rate schedule when :15 and :30 spots are placed in a program schedule. Because a program may not be broadcast in all cities on the same date and more than 13-weeks is frequently required in broadcasting 13 programs in a series, the cycle can be extended without additional payment until all 13 programs in the series have been broadcast in each city or to a maximum of 17-weeks after the first use of the commercial in any city whichever is greatest.

   The program spot airings begin and end with the commercial’s fixed cycle. This is unlike a wild spot where the client has thirteen weeks to air a commercial in a particular market, regardless of the fixed cycle. When the fixed cycle ends for a program spot, the number of airings begin back at one. Like the fixed cycle before it, the first airing is creditable against the holding fee.

·        Cable: Cable spots are those that will run on either cable systems or cable networks. There are different rates and rules for local cable systems and satellite cable networks. Spots that are produced solely for cable use are referred to as cable-only.

   Exclusivity cannot be acquired from a principal performer on cable only spots unless the performer is under a term contract for compensation guaranteed above minimum. If a principal performer is under exclusivity in a broadcast commercial, he may not perform for a competing product or service in a cable commercial during the permissible use of the broadcast commercial.

   A commercial produced for cable only may not be used on broadcast unless the producer has obtained the performer’s prior written consent and each performer receives an upgrade payment equal to one session fee. The session fee may not be credited to use.

·        PSA: Public Service Announcement.  The current rule is that one session fee will enable you to run the spot for one year. The unions have pretty strict definitions about what constitutes a PSA. In essence, if anybody else is getting paid for the PSA (not donating their time) and the media time is not being donated by the station(s) then it is not a PSA. Out of pocket expenses, however, may be reimbursed.

·        Seasonal: A seasonal spot is produced for Thanksgiving, Christmas, or some other seasonal special. Seasonal spots can be wild, program or cable. For seasonal spots, if the producer intends to run the spot for a second season, the principal performer must be paid one additional holding fee which cannot be credited toward holding or use in the second season. The additional holding fee is due 15 working days from the end of the original 13-week cycle. If a performer is going to be engaged for a seasonal commercial, it must be so stated in the original contract. Seasonal commercials may not be used for more than 15 consecutive weeks. If the producer opts for an additional 2-weeks, thus creating a 15-week use, an additional holding fee is due at the start of the additional 2-week cycle. The maximum use period is 2 consecutive seasons provided that the commercial is used as a seasonal commercial in the first season. Additional periods of use may be obtained with the consent of the principal performer.

   There is no exclusivity on seasonal commercials. If the producer wants exclusivity, the commercial cannot be seasonal.

·        Internet: Internet Commercials are those that are produced exclusively for use on the Internet. The wages for Internet Only commercials are completely negotiable. But if exclusivity is required, holding fees must be paid plus rates at not less than 300% of session. The rate for broadcast commercials also used on the Internet is on the Falcon Commercials Rate Sheet.

   Under the terms of the 2002 Strike Settlement, the union jurisdiction on Internet commercials only extends to commercials that are in manner and form very similar to regular commercials. It does not extend to pop-ups, for example.

   If an extra is in an Internet only commercial that is upgraded to broadcast, the extra shall receive the difference between commercial scale and what was paid for Internet only use.

·        Billboards (Standard Opens and Closes, Standard Lead-ins/Lead-outs): Billboards made for a designated program taken together are the equivalent of a single commercial and are paid as such. The Billboard may include a reference to the advertiser’s name, product or service and “the claim” for such product or service, as that term is understood in the industry. But it may not include any commercial message on behalf of such product or service. The rates for Billboards are the applicable program rates for a single commercial. If the same product or service is referred to in both the opening and closing, the claim may be split between the opening and the closing. If the Billboard is used in more than one program series, it is considered a separate commercial for each program series for which it is used. If elements of Billboards are used during the program itself, it shall be considered a commercial and must be paid as such.

   If a Billboard, either live or pre-recorded, has been created under the Network Television Broadcasting Code, then that code and the compensation prescribed for Billboards takes precedence.

   Extras employed in a Billboard, shall receive additional compensation. Extra performers in excess of 20 so employed shall not be entitled to any additional compensation.

·        Infomercials: A commercial that is longer than three minutes is classified as an Infomercial. There is a completely separate contract requiring certain signatory protocols, rates and rules for infomercials. Holding, tags, and versions for infomercials are negotiable. The union code is silent on these matters.

Even the experienced can be intimidated by the terminology, deadlines and opportunities for error in paying talent. In another section of this GUIDE we discuss other payments that may be due performers. But in this section, our objective is to help you understand the fundament concepts of talent Session Fees and Residuals. Please note that there are exceptions to the principles we are describing in this section, but we will address those later. 

Session Fee: is what a performer is paid to MAKE the commercial.

Fixed Cycles: A series of quarterly payment periods. The first fixed cycle begins on the day the talent makes the commercial (job date). In most cases, on-cam and off-cam performers in commercials receive a fixed payment that is due on the first date of each fixed cycle. The SESSION FEE covers the first fixed cycle. The payment for each additional fixed cycle is called a HOLDING FEE.

Use Fee: What a performer gets paid when the spot airs. The day a spot starts to air, this starts the USE CYCLE.

Maximum Use Period: The maximum use period consists of seven Fixed Cycles. This is the period of time during which an advertiser may use a spot without being subject to an increase in the original negotiated compensation.

The car is the talent. The leasing company is the union. The leasing rep for the talent and union is the talent agent.  

   The length of the lease is usually 21 months (The Maximum Use Period). Lease payments will be made in FIXED CYCLES of seven quarterly increments. 

   Your first quarterly payment is called the SESSION FEE. The remaining payments are due every quarter thereafter, but these lease payments are called HOLDING FEES and are due on the quarterly anniversary date of when you picked up the car.  

   Now that you have the car, you will want to drive it. But to drive the car you also have to pay USE FEES in addition to the lease payments (Holding Fees).

As a rule, you will pay these USE FEES based on the size of the cities in which you want to use the car. When you pay these USE FEES, you are entitled to use the car in those cities for a full 13-week period -provided that you continue to pay the lease payments (holding fees) on time.

USE FEES are independent of the holding fees and are due two weeks after you begin your journey to  the various cities.  

   Example: Let’s say that you leased the car on January 1 and agreed to lease payments of $300.00 per quarter. Therefore the lease is paid until April 1. You decide that beginning January 15 you are going to spend 3 months traveling in Miami, New Orleans and Dallas. The leasing company tells you that the USE FEE, based on the size of these cities is $10.  

   On January 1 you will pay $300. On January 30 (two weeks after you start your journey to the three cities) you will owe $10 in use fees. On April 1 you owe will owe another $300 lease payment but you have until April 15^th to travel in those cities before you have to make additional use payments.  

If you decide that you’re not going to drive the car again until September 1, you won’t have to make any use payments until September 15. BUT YOU MUST CONTINUE TO MAKE THE LEASE PAYMENTS.

   What happens if, at the end of the lease, I still have a few weeks left to go on my pre-paid use? You can finish up the trip without making an additional lease payment.

   Caveats: If the original payment (Session Fee) and subsequent quarterly lease payments (Holding Fees) are even one day late – you lose the car. To get it back, the leasing company (union) and/or the sales rep (Talent Agent) can demand exorbitant payments to reinstate the lease.

Residuals is the generic term that encompasses holding and use fees.

There are two factors that provide the rationale for Use Fees. The first factor is that many producers will not hire talent who are featured in other commercials in a market. The second factor is that on-camera principals grant certain de facto exclusivity of their voice and/or image to an advertiser.

   This means that the performer can’t do spots for competing products/services in the markets in which a spot is being aired. Both factors translate into potentially lost income opportunities from other talent employers. Therefore, the talent is compensated for the loss of this real or potential income.

Falcon tracks fixed cycles and sends out Cycle Reminders 4-5 weeks before a new cycle is set to begin. When you receive the Cycle Reminders, you should contact the appropriate party to find out if the are going to hold, reuse or released -let the spot “die.”  When the decision is made, fax the completed Cycle Reminder back to Falcon. We will bill for the new cycle or code the spot as released. If we do not receive the Cycle Reminders, the spot is automatically released. Be sure to get the Cycle Reminders with enough billing and payment turnaround time so that the talent fees are paid on time.

The lease (commercial) is automatically cancelled if you don’t make the lease payments (Holding fees). You will still owe for any overdue holding fees. If a lease is cancelled, but the ad agency or client air the spot without proper negotiation, they have effectively stolen the car off the lot and it will be treated as such.

A donut occurs when the beginning and end of a spot remains the same, but the body copy changes. In the national union broadcast contracts, donuts are considered new spots – not new versions – and are subject to full session and use. An Insert is what goes into the donut hole.

When a performer performs two different roles, or two or more different services, and the service is not part of the role or act, the performer is doubling. Samples: A character who play both the father and uncle of the bride. An on-camera performer, who doesn’t speak on-camera lines but does record an off-cam VO.

   Participation in group noises, is not considered doubling and is permissible without additional compensation.

If you book a performer as a principal they must be paid principal session fees and benefits. If, due to editing or camera work/audio work, a person booked as a principal becomes an extra you can downgrade their category from principal to extra.  Be very careful about this. The code language specifically indicates that you cannot downgrade if the performer’s face remains in the spot. It is only by popular interpretation, with union acquiescence, that face has generally been interpreted to mean an identifiable face.

   If someone wanted to make a big issue of it, they probably could. When you downgrade, the performer still gets a principal session fee and a downgrade fee that is equal to the session fee. The performer must also receive a written downgrade notice no later than 60 days after the job date or 15 working days after the first use of the commercial (whichever comes first). 

   When the face of a performer engaged as an on-cam principal does not remain in a final commercial but their singing or speaking does, the principal may be reclassified and paid as an off-cam performer.

   An Outgrade occurs when the photography or voice track of a principal performer is completely edited out of a spot.

   If you outgrade an on-camera principal, you must notify the talent in writing of the outgrade within 60 days of the performer’s job completion date or within 15 working days after the first air date – whichever comes first. If you notify them before the spot airs, no additional payments are due. If you do not notify them before the spot airs, you must pay them for the use or another session fee – whichever is greater.

   If you out grade an off-camera principal, and his audio is replaced, the performer must be notified within two working days after the replacement is made. Otherwise the performer is paid all full cycle holding and use fees until notice is given.  

   Upgrading occurs when an extra, due to a decision of the director or by virtue of photography, becomes a principal. A spot can also be upgraded, for example, local to national, etc. Before deciding to make an extra a principal, ask if they are willing to be upgraded and if they have any conflicts. Remember, there is no exclusivity with extras, But the extra you want to upgrade may already be a principal in a spot for a competing product or service.

No compensation is required for the performer who is being dubbed-over. But, the dubbed-over talent’s permission is required unless the performer is not available, can’t speak the language required, can’t really sing, etc.

Exclusivity is a guarantee from union principal on-cam talent that they will not perform in a spot for any directly competing product or service. Standard exclusivity is automatic only for on-camera principals and only for the period during which the producer is paying holding fees. Remember, there is no inherent exclusivity guarantee from non-union performers.

You ca    You can obtain complete exclusivity only from a principal performer who has entered into a term contract, (performs services on a continuing basis for a guaranteed amount).

               For Hispanic Commercials, you must pay an additional session fee to get exclusivity for competing products/services in English.

               To obtain additional exclusivity, you must pay at least additional amounts provided in the code.

   No exclusivity can be granted for seasonal commercials, non-identifiable pilots, radio or most TV voiceover.

   Exclusivity may not be required of principal performers engaged to portray non-identifiable voices (disguised voices, dialects, cartoon voices, etc. or for lip sync.

   Exclusivity cannot be required from extra performers.

When booking “star performers” and the compensation paid is 25% below the performer’s usual or customary compensation, the amount of H&R/P&W due must be calculated on the basis of the usual and customary compensation. This does not apply where it is customary to pay star performers minimum compensation (A PSA for a charity, for example or where the marquee value of the performer has been substantially reduced or the performer has not had four “comparable” appearances in the last 18 months or the performer’s engagement is only for a “flash” appearance).

   A star performer is a performer whose average gross compensation in a commercial, as measured by the performer’s last four comparable commercials, is more than $1500 per commercial. If the agreement is with an incorporated performer, the package price must be sufficient to provide for the applicable minimum compensation described herein plus H&R/P&W. In the case where the producer retains services from a signatory loan-out company under which there are to be covered and non-covered services, there must be a separate provision in the agreement for acting services.

   H&R/P&W is calculated on the basis of the acting (covered) services. It is the producer’s obligation to make the contributions directly to the funds regardless if the agreement is with the performer or the performer’s loan-out company. Claims for contributions not brought within four-years of the date of the filing of the original compensation remittance report shall be barred.

The union has no jurisdiction over print photography used in print media. If a still photo is used in a union commercial, or the still of a union member is used in any electronic medium, regardless of the job being “non-union” the union has jurisdiction regardless of any waivers signed by the performer in their capacity as a print model. Models are not legally allowed to waive the terms of national labor contracts. Stills are according to the Commercials contract.

If an extra is paid the unlimited use rate, the producer may air that commercial in perpetuity with no additional fees to the extras. If clips are excerpted from the original spot and put in a new spot, the extras shall be paid a one-time integration equal to the unlimited use session fee then in effect. Once this single fee has been paid, the footage involving extras can then be incorporated into any number of new spots and then becomes, in effect, stock footage.

   Integration is inserting photography or sound track from one spot into another spot. If a principal’s image is inserted into a new spot, the principal is entitled to applicable use payments for the integrated spot as well as for the original spot if it is still airing. Extras who are integrated get an additional session fee. Note that extras receive an additional session fee for integrations only – not other types of new versions. If the integrated spot will air in a new cycle and the original will not, the integrated spot is handled, for purposes of session and use fees, as if it were the original. If, in the integrated version, the performer can be downgraded (in accordance with the terms of downgrading) the payment of two session fees will relieve the producer of any further payment obligations.

   Whenever footage produced for cable only is integrated into one or more other cable commercials, all extras and hand models receive a single additional payment that is good for one-year use.

   Whenever photography for a broadcast commercial is integrated into one or more commercials, all extras appearing in the commercials receive a session fee. This fee is payable within 15-days after the first airdate of the first commercial into which photography has been integrated. The payment covers more than one commercial.

If there is a joint promotion by more than one advertiser and the commercial features more than one product or service, the principal receives scale plus 50% for the session. The additional compensation may not be credited to use and exclusivity is only given to one product/service.

The maximum use period is the length of time in which an advertiser may use a spot without being subject to an increase in the original negotiated compensation.  Maximum use periods can vary, but most commercials and Internet uses have a 21-month maximum use period. Cable-only commercials have an automatic 12-month maximum use expiration period and the advertiser may not continue to use the spot without prior written consent from the talent and appropriate payment.  Otherwise, maximum use periods are automatically extended another equivalent period unless the talent, in writing, notifies the producer that they have elected not to grant such renewed use. The written notice must be given no more than 120-days and not less than 60-days prior to the expiration date. The changing of a commercial shall in no way extend the maximum period of use applicable to any principal performer in the original version of the commercial.  

Meal penalties are allowances not wages.

It is the responsibility of the producer to fill in all blanks in Union Member Reports before it is signed by the principal performer. Although performers frequently carry blank Member Reports with them, it is the responsibility of the producer to have them available at the session.

If commercial copy is to be memorized, it should be provided 24-hours in advance of the performance whenever possible.

When a principal is required to report to a location other than the producer’s studio, within a studio zone, the principal receives mileage if the principal travels more than 25 miles from the center of the studio zone. Mileage is payable at the maximum allowable IRS rate.

Note:  All production personnel working with infants are urged to review the “Blue Book,” entitled “The Employment of Minors in the Entertainment Industry,” published by the Studio Teachers, Local 884, IATSE. Reference should also be made to the extensive federal and state labor laws and to any applicable collective bargaining agreements which govern the employment of child actors.

A minor shall be given a 15-minute rest period in every 2-hour period of the workday.

Multiplexing is broadcasting two or more programs simultaneously over different channels of the same network. For example, broadcasting the same program in the same time slot at any time of the day or night over NBC1, NBC2, etc. At present, a subcommittee of SAG/AFTRA is studying this issue along with the JPC.

Multiple tracking is re-recording over the original track or adding additional track, electronically or mechanically, containing the same material recorded on the original track.

New versions are treated as a single commercial for purposes of use payments but the principal performer receives a session fee for each version whether or not the new version or package change was actually performed.     Extras receive an additional session fee for integrations only. The new versions cannot be telecast in the same market areas where the original spot is still airing.

   A lift is a shorter or longer version of a spot where the version is created solely through mechanical or electronic editing. (editing a :30 into a :15 for example). The edited version may not introduce any new material. The producer may record a new sound track for the lift but only for such changes as are necessary for timing and synchronization. A producer gets one free lift with a spot. If additional lifts are made, the principal performers must receive another session fee for each lift. 

   Asking a principal or extra to perform a shorter or longer version is not a lift or a new version – it’s a new spot. It requires a full session payment for the extras and session and use for the principals.  The fixed cycle and maximum use period for a lift is the same as that of the original spot.

   When material from an existing spot is used to make a spot with a different message, but for the same advertiser and product, it is not a lift – it is an integration.

Package Changes:

Package changes occur when the introduction, body or ending of a commercial is changed solely to accommodate a package change for the same brand name product for the same named advertiser..

Example: In Columbus, Mort’s Toothpowder is sold in a red can. In Indianapolis it is sold in a blue can. At the beginning or end of the spot, the talent holds up the can and says “ Mort’s is a miracle.”  The on-cam principal receives a session fee for each spot featuring each differently colored can. But, both versions are treated as one spot for use payment purposes.  Or

Smith’s Supermarkets is in ten markets. In each market a different kind of Green Leaf brand canned vegetables is being featured. The body of the commercial doesn’t change, but at the end of the spot, the on-camera talent will admiringly pick up a can of vegetables and look just too happy for words, while the off-cam announcer says “Our special this week – Green Leaf corn (peas or whatever) for only 99 cents.

   Since each product (corn, beans, etc. is the same type and class (vegetables), the on-camera and off-camera performers receive a session fee for each version but all ten versions are treated as one spot for purposes of calculating use fees. 

Product Name Changes:

   If the advertiser and the product are the same and continue to be mentioned as in the original spot and the trade name is the only change. Example: a commercial for Grandma Mary’s, Inc. can be modified only to change Grandma Mary’s Blue Ribbon Salad Dressing in one market to Grandma Mary’s Red Ribbon Salad Dressing in another market.  OR Davis International sells coffee in one market as Jose’s Coffee and Columbo Coffee in another.

Principals receive 10% of the hourly rate for any hours between 8PM and 6AM. This premium is based on the individual performer’s hourly rate as agreed to.

   If the first call is at 5AM or thereafter, it is not considered night work.

   Extras receive a night premium of 10% of hourly session fee from 8PM to 1AM, thereafter they receive a 20% premium until dismissed. If first call is after 2AM, the 20% premium is in effect until 6AM.  Principals receive a premium of 10% for all hours after 8PM. If the first call is for 5AM or after – it isn’t considered night work for principals or extras. 

Where there is no dispute about an overpayment, the overpayment can be refunded to the producer or may be credited against subsequent payments due the performer provided that A) the overpayment and subsequent payments are made for the same producer, or B) the over payment and subsequent payment are made on behalf of the same advertiser even if the advertising agencies/producers are not the same. The amounts in question must be identified along with the date, commercial, advertiser and ad agency involved. Overpayments cannot be recouped if claim is not made within 6-months of the date of the overpayment.

Unless specifically indicated in writing, Overscale Payments may not be credited. If a producer edits or integrates commercials, thus creating new versions, all applicable payments required for those commercials may be credited against the performer’s guarantee in the same manner and at the same rate as the original commercials.

   Overscale Payments for stunt performers may not be credited against any use fees.

Union overtime is Time and ½ for the ninth and tenth hours. Double-time thereafter. Overtime is computed in hourly (or any portion thereof) units. The workday is a total of 8 full working hours. If the meal period is 1 hour, overtime starts at 9 hours after call time. If the meal period is one-half (1/2) hour, overtime starts 8.5 hours after call time.  Union off-cam (VO) session length is two hours. If work extends beyond two hours, a second two hour session is payable at full-rate. On non-union shoots, overtime is governed by state law.

Parking is reimbursable. If shooting in NY, LA and certain other areas, you must provide an escort to the performer’s car or public transportation after sunset.

Session Fees – 12 business days from job date.

Holding Fees – due every 3-months on the anniversary of the job date.

Use Fees – 15 days from the start of the use. Where the use is not known at the time of production or the start of a holding cycle, use payments may be deferred until 15 days after the end of the cycle.

Foreign Use – On or before the first use in a foreign country.

Program Commercials (Class B and C) - 5 days after first use.

Program Commercials (Class A) – A Class A program commercial is calculated on a Monday through Sunday basis and payment is due 15 business days after the end of each week. Guaranteed uses are due 12 business days after the guarantee is given to the principal performer. To qualify for the discount, a producer has to give the guarantee to the performer prior to the first use.

Wild Spots – 15 working days after the date of first use except that if the units are not known at the time of first use, the use can be paid 15 working days after the completion of the cycle.

H&R / P&W – The code requires payment within 15 working days but the union permits up to 30 days.

You can postpone or cancel a scheduled session up to 24 hours in advance (except that such notification may not be given on a Saturday, Sunday or holiday). A postponed session must be rescheduled within a period of 15 working days from the original session. In the event of such postponement, you must pay the performer 1/2 of the applicable session fee. This fee is not creditable toward any future session or use.

    Only one postponement can occur during the 15-day period. Postponement and cancellation fees can not be credited as session fees.

    If the new session does not take place within the 15-day period, then the performer must be paid an additional 1/2 of the applicable session fee and the principal performer is thereupon released. If the session eventually takes place, none of the above fees can be credited toward the new session or use.

Any on or off-camera person is covered by the union contract. If you use employees or “real people” and they are not professionals/union members, you could be facing significant preference of employment fines. An executive delivering an institutional message but not promoting a product or service, could be waived. For example, the president of General Motors thanking the nation for contributing to a hurricane relief fund for which he was chairman. The union will also grant waivers due to certain safety or skill concerns. For example, needing to use “real people” to operate complex machinery or meet government/common-sense safety requirements.

The reading of lines, acting, singing or dancing in preparation for a performance, in the presence and under the supervision of the producer, constitutes a rehearsal. Rehearsals are counted as work time.

    The union will freely grant waivers for specialized training such as horseback riding, fencing, etc. Compensation for specialized training can be negotiated between the principal and the producer subject to approval by the union. This specialized training does not constitute the start of an employment period for the principal.

A Right to Work guarantees that no person can compelled, as conditions of employment, to join or not to join, nor pay due to a labor union. Section 14(b) of the Taft-Hartley Act affirms the right of states to enact Right to Work laws.

Alabama           

Arkansas           

Georgia           

Iowa               

Louisiana          

Nebraska           

N. Carolina           

Oklahoma           

S. Dakota           

Texas              

Virginia           

Arizona

Florida

Idaho

Kansas

Mississippi

Nevada

N. Dakota

S. Carolina

Tennessee

Utah

Wyoming

    There are many misconceptions about producing in a Right to work state. Although Right to Work laws permit employees to work on unionized productions without being required to join a union, non-members must receive the same wages benefits and other terms of employment as the union members working on the same production.

    While it is generally believed that Right to Work laws reflect a state’s union climate, many motion picture production unions operate in states with Right to Work laws. Thus, producing in a Right to Work state will not guarantee that a production can avoid union organizing efforts.

    The responsibilities of a signatory are the same in a right-to-work state as in a union-shop state. Employees can never be required to join the union in an RTW state. The obligation of a signatory to hire only professional performers is still in effect. Even in an RTW state, you have to have some evidence that the non-member you hired is a bonafide professional with a resume and a franchised/professional agent. While you won’t be automatically fined for hiring a non-member, you are still liable for preference of employment fines if you hire non-professionals.

    In an RTW state, you are also still responsible for reporting hiring of non-members under the union security language of the union agreement. If you fail to file the Taft-Hartley within 15 business days (25 days on location), you will still be subject to a fine.

It shall be deemed hazardous work for a dancer to perform aerial acrobatics, wire flying, knee work, to support more than one person in an unsafe manner or dance where sight or breathing is impaired, do to a mask, fog, smoke, fire, etc.

    Equipment, break-away props should be tested during the rehearsal to avoid injury to the performer.

    Principals and Extras must be notified prior to date of hiring if they will be working in smoke, dust, snow, or wet conditions. If the performer is not notified, they may refuse to perform. Should the performer refuse, the performer is still due a session fee or their guarantee, whichever is greater. If work in smoke is required, it must be indicated on the employment contract and no later than the first day of employment, producer shall provide each principal with a Material Specification Data Sheet (MSDS). When extra performers agree to hazardous work, the amount of additional compensation is negotiable prior to the performance of such work.

    The Producer shall comply with all Federal and State laws and regulations applicable to the use of substances in creating smoke.

    Any facility used for interviewing, casting, fitting, shooting/recording must comply with appropriate fire and safety codes and the Americans with Disabilities Act.

    The smoking of cigars, cigarettes or pipes in any facility under the producer’s control is prohibited. Smoking is permitted if required by the subject of the commercial, e.g., a commercial depicting the ill-effects of smoking.

    When a hand model is booked, they must be given a complete description of the work to be performed and advised of any unusual or potentially hazardous working conditions. Performance of hazardous work by a hand model, requires additional compensation that is negotiable.

    When hazardous or stunt work is contemplated, the producer shall have medical and/or first aid at the location. First Aid kits are always required on location.

    Depending on the nature and degree of the hazard or stunt involved, a visibly identifiable qualified medical person shall be readily available for rehearsals and performances.

    Transportation to the nearest medical facility shall be readily available and the transportation vehicle should be capable of accommodating a stretcher and appropriate medical/first aid equipment.

    For dancers, the producer must provide a qualified doctor on call and a deputy elected by the dancers will be provided with the doctor’s name and phone number.

If an English spot is produced and is going to air in English and Spanish markets, but the only VO is Spanish, the on-cam principals will get an additional session fee for the first Spanish unit plus Wild Spot unit fees from the Spanish Unit table.

    Spanish audio principals will receive session and use for the Spanish units only.

    Spanish Program fees are per commercial, but the fee covers all Spanish networks.

    Extras who are in an English spot that is being converted to Spanish version receive an Extra session fee for the Spanish version.

Stand-Ins are extras who are engaged to substitute for members of the cast during rehearsals.

    Stand ins cannot be required to memorize any material or supply any specific wardrobe. If stand-Ins are required to memorize or learn any material including choreography or routines, they shall be classified as Principal performers.

    During rehearsals, no performer is permitted to read any part other than the performer’s own unless the performer is paid the applicable stand in fee but persons other than the performer may cue.

    If an extra performer also does stand in work on the same day, they shall receive not less than the additional compensation called for in the contract. Overtime is paid on the highest classification.

    Registered extras must be used as stand ins on any day when other performers are employed. On other days, such as pre-light days, when no other performers are involved, registered extras do not have to be used.

When television and radio stations also broadcast commercials over the Internet. There are two-types of streaming:  Passive streaming is done without the consent or knowledge of the advertiser or agency.

    Active streaming is authorized by the advertiser or agency.

    When commercials are used in active streaming, Internet use is also paid. On passive streaming, it is the union’s position that the Internet use must also be paid but this has not been firmly established in the code. Advertisers/agencies are encouraged to strengthen their position by stating in media contracts that the station cannot stream without prior written approval of the advertiser/agency.

Tags are the industry term for short messages - usually at the end of a spot. A tag done at the beginning of a spot is called an introduction.  Tags are done to accommodate legal requirements (“Member FDIC”, “Paid for by the Pompous for Senate Committee”); to accommodate place name changes; dealer identification; 800 number changes etc. 

    When a principal performs in a spot they may, via photography or sound track, record one free tag for the producer. Additional tags must be performed at the “tag rate.”  If a performer is called into a session only to do tags, the performer must charge a session fee for the first tag and the “tag rate” for each additional tag. The performer will also be paid use for the first tag as though it were a spot.

Types of allowed tags and introductions:

Dealer IDs: Same single specific-named product with the same advertiser but different dealers.

“In (name of city), White Lightning perfume is available at all (name store(s).”

Legal  Requirements: “Paid for by Smith for Governor,” financial institution disclaimers, etc.

Tag Scenarios

• A performer does a spot for a client. At the same session, the performer may do 1 free tag for the client. All others are at the tag rate. The performer gets no market use on the tags because he is getting use on the spot.

• A performer is called in just to do tags for a spot on which they were a principal performers. The performer gets a session fee for the first tag and the tag rate for each additional tag. He does not get residuals on the tag(s).

• A performer is called in to do tags for a spot in which they were not a principal performer. The performer gets a session fee for the first spot and the tag rate for each additional spot. The performer also gets cumulative use payments for all markets in which the tag will air. The use, however, cannot be double credited. For example, the performer does tags for three different spots. All three spots will air in Columbus, Minneapolis, and Cleveland. The performer gets paid for use in 10 Units not 30. Similarly if the performer had done a fourth tag that was only airing in Salt lake City, he would be paid for a total of 11 units, not 31.

• In a separate session a VO does pre and post grand opening tags for several different spots airing in several different locations. The performer gets a session fee and the appropriate tag rate for each tag recorded regardless of the number of spots they are attached to or the number of markets in which the spot will air.

    Tags for dealer spots are at the regular tag rate in spite of the fact that dealer spots and tags also have a 6-month use.

If no work is done on the same day as travel, a session fee is due.  If work is done the same day, the travel time counts as work time. Travel time at the end of a travel/workday is not computable as overtime. It is computed in increments of one-thirty seconds (1/32) of a session fee for each quarter hour (15) minutes of travel. Time spent traveling on Saturdays is computed at straight time as indicated above. Travel time on Sundays and Holidays is at Time and ½ of straight time. Travel time for extras on a nearby location, shall be paid in units  of 15 minutes and shall not be considered for the purpose of computing daily overtime. The definition of a nearby location is a location outside of a studio zone on which extras are not lodged overnight but return to the studio at the  end of a workday. A distant location is a location in which the extra performer  is required to remain away and be lodged overnight.

If no work is done the same day as travel, a session fee must be paid.  If work is done the same day as travel, the travel time counts as work time. Travel time at the end of a travel/workday is payable in quarter hour increments of the session fee. If the work time causes travel time to extend past midnight, the performer receives the quarter hour increments on the basis of session plus night premium.

    Principals are dismissed at the place of reporting not on location.

    Reasonable meal periods of not less than ½ hour or more than 1-hour may be deducted from travel time.

    Travel on a weekend/holiday is at time and one-half.

The period of time required between dismissal and first call of the next day.

Use fees are an additional amount paid to the performer for actually airing the spots. Use fees are usually based on the number of TV/Radio/Cable households in a media market. Under some contracts they can be based on the number of airings in a given cycle.

    Because spots rarely begin airing on the job date – the start of the fixed cycle – the period during which a spot actually airs is called the Use Cycle. The use cycle may begin The cycle is the period of time during which you may air a spot. The cycle begins with the day the performer made the commercial and usually goes for 13 weeks. It is called a Fixed Cycle. The standard cycle for most radio and TV spots is 13 weeks. Radio can be bought in 8-week cycles. Foreign use cycles are for a full 21 months. Some local contracts permit cycles that are shorter than the 13-week cycle. These shorter cycles can provide substantial savings.

    For purposes of union pricing, the number of TV or radio households in a market area (ADI/DMA) is described in units. For example, let’s say a unit represents 250,000 television households. So if a spot is airing in Columbus, Cincinnati and Pittsburgh, you will be airing the spot in 7 units (1.75 million households). But, you will only pay for 6 units because the first unit is always “free.”  Even if holding fees are required, use fees are only payable for the cycle during which the spot is actually run. Markets that are valued at more than 1 unit are called weighted markets.  There are also special units for Spanish language commercials that may be airing in certain markets where there are large Hispanic populations.