When Web sites first started popping up, I had no idea what FAQs meant—and quite frankly, I was hesitant to ask. But now that I’m a somewhat seasoned computer maven and Web site surfer, I know that FAQs are Frequently Asked Questions.
And now that we at CTP are proud owners of our very own reconstructed Web site, we get lots of hits on our FAQs. Since talent payment is a mysterious and often foreboding world with its own strange terminology, I thought you might be interested in the most frequent "Frequently Asked Questions" from producers … and our answers to them.
Q. What does "Right to Work" mean?
A. In a "right to work" state, a producer who is a signatory (to the union) can hire anyone they please, whether or not they are union members. The important thing to remember is that that is the only benefit from a right to work state. You still have to pay them all union wages. However, if the producer is not a signatory, they can hire anyone and pay them an agreed upon amount not restricted to the union rates.
Q. What is a signatory?
A. A signatory is a producer (usually an advertising agency) who has become an adherent or signatory to the union agreement, and has therefore agreed to the rates and rules as established by the union.
Q. What are "holding fees"?
A. Here’s the union definition of a holding fee: "Upon the commencement of the first fixed cycle and upon the commencement of each consecutive fixed cycle thereafter throughout the maximum permissible period of use or any extension thereof, a principal performer shall be paid a separate fee, herein called a holding fee, in an amount equal to a session fee. Payment of such a holding fee to each principal performer, whose services are utilized in the commercial, shall be a condition to Producer’s right to continue the use of such commercial."
And in plain English: A holding fee is a timely payment giving the advertiser the right to use the talent performances in a commercial. It’s based on the session and is required every consecutive 13-week cycle, due on the first day of the cycle. There are no grace periods for payment of holding fees. If you don’t pay the holding fee, it means you have given up all rights to the commercial.
Q. What if we’re late with a holding fee?
A. Talent has the right to refuse a late holding fee and can do any of the following: deny the producer the right to continue to use the commercial; ask for the minimum scale reinstatement (i.e. two back holding fees); any combination of the above.
The union has the obligation to enforce the talent’s choice. If the holding fee is not paid on time, the commercial cannot be used or reinstated without talent and union permission.
Q. What is a Station 12?
A. Only the union can tell you if a talent has the right to work for you, the producer. The talent and the agents don’t always know if they are "members in good standing," "must joins" or "non-members." Usually, the agents always assume their clients are members in good standing. Often, they are wrong. It is the producer’s responsibility to make sure that the people they hire are members in good standing. If they are not, the producer will be fined $300 per person. If the persons they want to hire are "must joins," this means the talent must join before they can work for you. If they are non-members, a "Taft-Hartley" must be written by the producer, their designate, casting people, or business affairs manager within 15 days of the session or they will also get a fine. Timing is crucial.
Scenario: The casting is complete, and now the Station 12 must be done. Once the report comes back from SAG (the union), the producer must make sure to follow the procedure. If a talent they really want is a "must join," they must join before the shoot date. If they do not join, the producer must chose a new talent or prepare to pay the fine. If the talent is not paid up, the talent must go to SAG to pay the dues that are late, or again, the producer gets a fine.
Is this easy or fair? Not really, and in some cases, almost impossible, but it is what the union requires. SAG has said that they plan to be even stricter.
Q. What are the forms a producer needs before producing a commercial?
A. Producers need a Production Time Report, Talent Contracts, W4, and I-9. The only forms that may be available from the union are the talent contracts. The rest can usually be provided by your talent payment service. Your talent payment service may also ask you to fill out a Production Final Cast report, which they should supply.
Q. What if I don’t know anything about expiration notices, residuals, buyouts, reinstatements, or the difference between wild spot, network, cable, Internet and public use—where can I get answers?
A. Call your Broadcast Business Affairs department, or your Talent Payment Service. They’ll be happy to walk you through all the questions you may have.
