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September 2008 e-EntertainmentLawArticle Negotiating "Below The Line" Agreements Film project budgets are typically broken down into two cost categories: "above the line" costs and "below the line" costs. In terms of personnel, the "above the line" costs are fees payable to writers, actors, directors and producers and the "below the line" costs are salaries paid to film crew members. Crew members include: grips, drivers, lighting technicians, make up artists, art directors, costume designers, etc. With the exception of a few deals (i.e. the cinematographer, music supervisor, composer and costume designers), "below the line" deals are usually straight forward and therefore easier to negotiate than "above the line" deals. Although the services of crew members are quite varied, many of the deals for "below the line" personnel address the same basic issues: services, compensation, credit, meals, travel, lodging and per diems. The following article will briefly discuss the common issues found in the "below the line" personnel employment contracts. Services "Below the line" employees are often hired under a short form employment agreement or a simple deal memo. Usually, the provision that addresses services is very broad and vague. In fact, many deal memos simply indicate that the crew member must provide customary services consistent with industry standards. However, the length of service is very clear and within the deal memo, producers specify how the crew member is hired: "at will" which means the crew member can be replaced for any reason; "week to week" which guarantees the crew member a guaranteed pay for the entire week, even if employment is terminated during the middle of the week; or for the "run of the show", which guarantees the crew member payment for the entire show. Compensation Many crew members are represented by one of the two following unions: IATSE- the International Alliance of theatrical and Stage Employes or the Teamsters. When a producer hires crew members affiliated with a union, the producer must sign a collective bargaining agreement and consequently, many crew members will be employed at union- prescribed rates. On the other hand, if the film is a non-union film, the Producer can pay the crew a flat weekly rate and in that case, if the shoot goes into overtime, on certain days, the Producer does not have to pay the overage fees. Credit Most crew member credits appear in the end titles of the film. Some crew members (i.e. Production designer, Costume designer, Cinematographer, Casting Director, Editor and Composer) are considered higher-profile "below the line" personnel and will be able to negotiate to have their credits appear in the main title of a film. Subject to applicable collective bargaining agreements, Producers usually negotiate that any crew member's screen credit is at the producer's discretion and subject to the crew member performing all services required through the completion of the project. Meals/Travel/Lodging/ Per Diems The production company provides meal breaks and/or food service at approximately six hour intervals. Many productions also have meals three hours after crew call and lunch. If the crew is on location and the production company is providing travel and lodging, the producer usually gives the crew members a per diem. Work for Hire Any smart producer will also include a "work for hire" clause in the agreement with all crew members. Many crew members (i.e. Set Designer, Costume Designer and the Cinematographer) create things that could be protected under a copyright in their name. To avoid any potential legal problems dealing with ownership of the property, Producers should add language in the agreement that specifies the Producer will be the sole and exclusive owner of the employee's services. Conclusion Usually, the line producer negotiates "below the line" employment agreements directly with the crew members being hired. Nevertheless, should you have questions concerning these deals, please contact the Law Offices of Akua Boyenne. [ back to top ] |