Commercial Contract FAQ |
 Questions? Contact Us! |
 |
FAQ |
 | Do performers get paid for auditions?
Remember to use your SAG member ID number, not your Social Security number, to prevent identify theft and to sign in and out. If you are entitled to audition overtime and do not receive a check within 12 business days, contact the SAG office so that a claim can be filed. |
| What does “clean contract” mean? On the front of the standard SAG employment contract, there are 3 separate boxes to check if you do not consent to use of your commercial on the Internet, as a dealer commercial, and/or on a simulcast. On the reverse side, two separate paragraphs grant rights to producer for foreign and theatrical/industrial use. Although not a contractual term, “clean contract” is used by producers to mean that, as a condition of employment, you must grant these rights at the time of booking at scale, i.e., you may not mark your contract by checking off these boxes or crossing out the paragraphs. In the event that the producer did not acquire these rights at the time of booking, the performer should check the boxes on the front and strike the paragraphs on the back. By doing so, the producer must come back to you and negotiate for these rights. If there is any question as to whether any of these rights were granted to producer, check with your agent before signing your contract. Can a producer require the performer to accept a “clean contract” as a condition of auditioning for a commercial? No. Performers cannot be required to accept minimum fees as a condition of auditioning. A producer is permitted to state the company’s intent to offer a performer the minimum fees; however the producer is obligated to advise the performer at the same time of his/her right to negotiate for better terms and conditions. |
| What is the difference between a “first refusal” and a “hold”? When a casting director issues a “first refusal” it means that a final casting decision has not been made; the casting director is requesting that the performer contact him/her before accepting a booking for another job on the same day(s), i.e., giving the original producer the first opportunity to book the person. A “First refusal” is not a booking and the performer has no contractual obligation to get back to the casting director or turn down the second job nor does the producer owe a cancellation fee if the performer is not used. As a professional courtesy, it is suggested that the performer advise the casting director of the second job before accepting the booking. If a performer has been put on “hold,” the producer has engaged the performer and a cancellation fee is due if the producer cancels the engagement. A cancellation fee would not be paid when a performer is placed on an “avail” and not used. These terms are not always used properly. If you have a question as to whether you have been definitely booked, you or your agent should ask the casting director, “Is this a booking?” |
| When is the session payment due for a commercial? Session payment for a commercial is due 12 business days after the session. |
| How is overtime paid? A principal performer receives time-and-one-half for the ninth and tenth hours and double time thereafter, in hourly units. Principal performers receiving more than two times the session fee per commercial per day receive time-and-one-half instead of double time after the tenth hour. |
| Are session and residual checks for members sent to the Guild? Normally, session and residual checks are sent to the performer directly, or to whomever the performer has designated on the employment contract (such as to his/her agent). However, checks for Spanish and Asian language commercials, as well as for claims that have been filed, are sent directly to the Guild, and in turn, are forwarded to the performer. |
| What is the difference between sweetening and multiple tracking (Singers)? Multiple tracking, which requires an additional 50% of the original fee for solos and duos, is a re-recording over the original track or adding another track, electronically or mechanically, which contains the same material as recorded on the original track. Sweetening, which requires an additional 100% of the original fee for solos and duos, is the addition of a new or variant track over the original track. Group performers are paid an additional 50% of the original fee for unlimited multiple tracking and/or sweetening. |
| What are holding fees? Holding fees are paid to a performer in “fixed” cycles, every 13 weeks from the session date, if the producer wishes to retain the rights to air the commercial and wants to hold a performer exclusive to the product. During this 13-week period, a performer cannot accept work in a commercial for a competitive product. For example, if a performer has received a holding fee for a Pepsi commercial, he/she may not accept work for a commercial advertising Coca-Cola during that period of time. |
| What if a performer does not receive a holding fee? If the producer has not paid a holding fee to a performer by the first day of the new holding fee cycle, he/she is released from exclusivity and may audition for, and accept employment in, a commercial for a competing product. Is the producer obligated to send a notice releasing a performer from the commercial? The producer is not obligated to send a notice releasing a performer from the commercial. If a performer does not receive a holding fee for a new 13-week cycle, the performer has been released from the commercial. |
| What if the holding fee payment has been postmarked late? Holding fees are due (and must be postmarked) no later than the first day of the holding fee cycle. There are several choices if the holding fee is not paid on time. The performer may ask for late payment damages and accept the holding fee. Or the performer may reject the holding fee payment and consider him/herself released from exclusivity. Or the performer may reject the holding fee payment and renegotiate the terms of his/her contract pertaining to the commercial if the producer wishes to continue to use it. |
| How long is a performer “held” to a commercial? The “maximum period of use” of a commercial is 21 months (a total of seven 13-week holding fee cycles). Provided the producer continues to make timely holding fee payments, the performer is held exclusive to the product for the 21-month period. If the performer (or his/her representative) does not send a timely renegotiation letter, the producer can extend the maximum period of use for an additional 21 months at the same rates as for the original 21 months. |
| When must a re-negotiation notice be sent to the producer (or advertising agency)? A renegotiation letter must be sent 60 to 120 days (two to four months) prior to the end of the maximum period of use. Check your pay stub to find the end date of the maximum period of use (MPU), and count back 60 to 120 days to establish when you or your agent must send the notice. The letter should be sent to the producer (ad agency) listed on your employment contract. Sending the letter gives the performer the right to renegotiate new rates or to say he/she does not grant the right to continued use of the commercial. It is advisable to send a copy of the letter to the Guild at the same time. If your agent does not send a renegotiation letter, and the commercial is renewed for an additional 21 months at the same rate, he/she may not take a commission. |
| When are payments for residuals due? Residual payments must be postmarked within 15 working days from the first use in a 13-week cycle. However, payment for all Class A uses that occur from Monday through Sunday are due within 15 working days from the following Monday. In the event that payment is not made on time, late payment damages become due. |
| What is “Class A” use? If a commercial is running on interconnected stations (a network) in more than 21 cities, or sponsors a program (“This program is brought to you by …”) this constitutes Class A program use. The cycle begins with the first use date and payments are made on a declining rate formula for each use occurring within a 13-week period. For example, the first Class A use is paid at the same rate as the session fee. The second use within the 13-week cycle is $130.05 for an on-camera performer. Uses #3-13 are paid at $103.20 each and the 14th and each use thereafter is paid at $49.45. (Group performers and voice-over performers are paid under a similar formula, with lower rates reflecting their classifications). A lower per-use formula applies for use that occurs on PAX TV. |
| Are there other types of Program use? Yes, when a commercial airs on interconnected stations in under 21 cities, there is a flat rate paid for all use that occurs within a 13-week cycle. Class B is for program use that occurs in 6-20 cities and Class C is for program use that occurs in 1-5 cities. |
| What is Wild Spot use? Wild Spot is a type of use in which a commercial does not air on interconnected stations and does not sponsor a program. Time is bought on individual stations in individual markets or cities. Each market/city is assigned a unit value based on the number of television households and the performer is paid for all units of use within a 13-week cycle. The Wild Spot payment is due within 15 working days from the start date of the cycle. If the commercial is broadcast in additional cities within the 13-week cycle, the producer may pay for those additional units within 15 working days from the end date of that 13-week cycle. |
| What are the payments for Cable use? There are two types of residual structures for cable:
|
| What are the payments for Internet use? There are two types of residual payment formulas for a commercial used on the Internet:
|
| What should I do if I don’t believe I’ve been paid properly? If you see your commercial airing but are not receiving use fees, you should file a claim with the Union. When you do so, it is helpful to provide as much information as possible, including the date of the sighting, the program, the channel, and the time. |
| What are the penalties if my check is paid late? In the event of untimely payment, late payment damages are due as follows: $3.00 per business day up to 25 days or a maximum of $75.00. Additional damages become due in the event that a claim is filed and full payment is not made within a specified time. When a payment is not made on time, generally late payment damages are not included in the check unless a claim has been filed by the union. If your payment is made late and late payment damages have not been included in the check, please contact the Guild to file a claim. |
| Does a principal performer continue to receive residuals if he/she is edited out of the commercial? Downgrade. A principal performer is entitled to residuals and may not be downgraded as long as his/her face appears in the commercial. If his/her face does not appear but his/her performance otherwise remains, the performer must be notified of a downgrade and paid a downgrade fee. Thereafter, the performer will not receive residual payments. Outgrade. If a principal performer’s photography or soundtrack is completely edited out of the final version of the commercial, the performer must be notified of the outgrade. The notification must be made within 60 days after the completion of employment but in no event later than 15 working days after the first use of the commercial. No additional fees or residuals are paid to an outgraded performer. |
| Would a new commercial be created if the ending were changed? Under certain circumstances, the beginning and/or ending of a commercial made for a particular advertiser may be changed without creating an additional commercial. The Contract provisions governing this area are complicated and we suggest that you contact your local SAG office for assistance. |
| If a principal performer is booked to work on Monday and Wednesday, would payment be due for Tuesday? Not if the performer is working at his/her home base. When an on-camera principal performer is employed, other than on an overnight location, consecutive employment does not apply. If you are not given firm dates, the subsequent dates are subject to the performer’s availability. |
| Are public service announcements (PSA’s) covered by a SAG contract? Yes, members may not work in a PSA unless the company is signatory to the union contract. If the union has approved the commercial as a PSA, the session fee and pension & health contributions must be paid. Additionally, the residuals are waived for a one-year period. Use for each additional one-year period requires the written consent of both the performers and the union. For these extensions, the performer may (but is not required to) waive additional payment. The producer may not request a use period longer than one year at the time of the original session. Please check with your SAG office for provisions governing PSAs for the Partnership for a Drug-Free America. |
| Are Infomercials covered by SAG contracts? Yes. Please check with the Guild to ensure the company is signed to a contract before working in the production. |