How will the shutdown affect contracts?

[jonartdesigns]

Posted: 11/18/20 at 1:39pm

By the end of the shutdown, Id imagine that everyone, save for those with run of show contracts will have had their contracts expire.

Are actors whos contracts are up obligated to finish out the number of weeks they were contracted for? (Especially in the case of actors who had other commitments lined up)

And on the flip side, are producers obligated to hire everyone back, or could the producers of long running shows use this as an opportunity to clean house so to speak?

[Fosse76]

Posted: 11/18/20 at 1:56pm

jonartdesigns said: "By the end of the shutdown, Id imagine that everyone, save for those with run of show contracts will have had their contracts expire.

Are actors whos contracts are up obligated to finish out the number of weeks they were contracted for? (Especially in the case of actors who had other commitments lined up)"

Unlikely. Contracts have what is known as a contract period. That's the time during which it is valid. Without specific dates, there can be all sorts of problems on both sides. 

*ETA I forgot to preface that the contracts likely have specified dates. 

"And on the flip side, are producers obligated to hire everyone back, or could the producers of long running shows use this as an opportunity to clean house so to speak?"

If a contract expires, there is no obligation to rehire anyone (outside of whatever terms are in the contract regarding rehiring). They could absolutely use the time to "clean house". Whether or not that's practical is an entirely different question. 

Updated On: 11/18/20 at 01:56 PM

[HogansHero]

Posted: 11/18/20 at 3:09pm

as I wrote somewhere else, no one knows what concessions, deals, etc., we might see as we pull out of the pandemic, but in extant terms, IIRC (and I am too lazy to check but maybe someone else isn't ) a suspended term contract is not bilaterally enforceable: only the actor can enforce it. Whether it could be argued that this is a different situation than that contemplated, I have no clue. Likewise, no clue what all of this would do to any remaining run of show contracts.

[bdn223]

Posted: 11/19/20 at 11:30am

Based on what I have seen of some actors Instagram Story Q&A's is seems like their contracts were put on pause/temporarily suspended, when Broadway was shutdown. Thus when Broadway reopens they will have a job for the period left on their contract or until the show closes.

I am sure the Union and producers discussed terms where actors can  back out of the contract if they get a new work opportunity ie a TV/Film role or just want to leave the industry all together before theaters reopen, as long as they give producers enough notice. Then I am also sure producers have the right to re-evaluate cast members performing capabilities to make sure they are still up to the performing standards they were hired for pre-shutdown. I would assume a union rep would likely be in the room for these evaluations to prevent  producers who want to clean house to try and greener and likely cheaper casts. 

 

[HogansHero]

Posted: 11/19/20 at 11:59am

As I said above (and have now confirmed in the production contract) an actor can walk from a term contract in this situation. Beyond that, I would be loath to pay attention to anything an actor says on social media about contracts. If there are special arrangements made, expect them to be across the board and not case by case. And no there will not be a union rep in the room for auditions. There is no rule against recasting with cheaper actors when there is no contract, and there is no issue if there is a contract. 

[ACL2006]

Posted: 11/19/20 at 12:23pm

I would also doubt that producers will want to replace half their cast after being closed down for over a year and a half. Now if an actor simply doesn't want to return, that's a different story. I do think the majority of shows will have a few new cast members when they reopen.

[itsjustmejonhotmailcom]

Posted: 11/19/20 at 1:27pm

jonartdesigns said: "By the end of the shutdown, Id imagine that everyone, save for those with run of show contracts will have had their contracts expire.

Are actors whos contracts are up obligated to finish out the number of weeks they were contracted for? (Especially in the case of actors who had other commitments lined up)

And on the flip side, are producers obligated to hire everyone back, or could the producers of long running shows use this as an opportunity to clean house so to speak?"

The agreement reached with AEA and the League was to "suspend and extend" for 18 months. So the clock stopped ticking on contracts when Broadway shut down, and starts ticking again 18 months later or when Broadway reopens if that comes first. There are some outs for both sides. And if a show reopens within 6 months of the government giving the go-ahead for theaters to reopen, AEA members have right of first refusal to resume their jobs.

[HogansHero]

Posted: 11/19/20 at 3:10pm

@itsjustme I know there was an agreement re tours but has there also been an agreement re Broadway? I had not seen that.

[Fosse76]

Posted: 11/19/20 at 5:13pm

As Hogan said, legally, the producers cannot unilaterally extend the contract period. The dates are "written in stone" in the contracts, and contract law is pretty concrete. So while the League can claim that the contracts are paused and will resume when performances resume, that isn't legally enforceable unless there is a written rider executed by both parties amended to the contract. Since all contracts will have expired by the time shows resume, the termination procedures of the expired contracts would still be in place. So while an actor would be able to simply walk away from the show, the show is unlikely to be able to just terminate them outside of the original contract terms. However, it would be irresponsible for anyone to return without a newly executed contract.

[itsjustmejonhotmailcom]

Posted: 11/19/20 at 6:59pm

HogansHero said: "@itsjustme I know there was an agreement re tours but has there also been an agreement re Broadway?I had not seen that."

Yeah, they are very similar.

[itsjustmejonhotmailcom]

Posted: 11/19/20 at 7:02pm

Fosse76 said: "As Hogan said, legally, the producers cannot unilaterally extend the contract period. The dates are "written in stone" in the contracts, and contract law is pretty concrete. So while the League can claim that the contracts are paused and will resume when performances resume, that isn't legally enforceable unless there is a written rider executed by both parties amended to the contract. Since all contracts will have expired by the time shows resume, thetermination procedures of the expired contracts would still be in place. So while an actor would be able to simply walk away from the show, the show is unlikely to be able to just terminate them outside of the original contract terms. However, it would be irresponsible for anyone to return without a newly executed contract."

They didn't do it unilaterally. The unions and the league negotiated a settlement agreement. It will almost certainly be more than 18 months of closure (IMHO) though which will make that agreement moot.

[HogansHero]

Posted: 11/19/20 at 7:36pm

itsjustmejonhotmailcom said: "HogansHero said: "@itsjustme I know there was an agreement re tours but has there also been an agreement re Broadway?I had not seen that."

Yeah, they are very similar."

So you are saying that there is a Broadway agreement re the Covid issues? Can you provide a link? I have not seen anything on it, hence my question. Regarding the rest of what the two of you say there is some right and some wrong stuff but it probably doesn't matter right now.

[itsjustmejonhotmailcom]

Posted: 11/20/20 at 12:42pm

HogansHero said: "itsjustmejonhotmailcom said: "HogansHero said: "@itsjustme I know there was an agreement re tours but has there also been an agreement re Broadway?I had not seen that."

Yeah, they are very similar."

So you are saying that there is a Broadway agreement re the Covid issues? Can you provide a link? I have not seen anything on it, hence my question. Regarding the rest of what the two of you say there is some right and some wrong stuff but it probably doesn't matter right now. "

@HogansHero I DM'd you.

[Fosse76]

Posted: 11/20/20 at 12:56pm

itsjustmejonhotmailcom said: "Fosse76 said: "As Hogan said, legally, the producers cannot unilaterally extend the contract period. The dates are "written in stone" in the contracts, and contract law is pretty concrete. So while the League can claim that the contracts are paused and will resume when performances resume, that isn't legally enforceable unless there is a written rider executed by both parties amended to the contract. Since all contracts will have expired by the time shows resume, thetermination procedures of the expired contracts would still be in place. So while an actor would be able to simply walk away from the show, the show is unlikely to be able to just terminate them outside of the original contract terms. However, it would be irresponsible for anyone to return without a newly executed contract."

They didn't do it unilaterally. The unions and the league negotiated a settlement agreement. It will almost certainly be more than 18months of closure (IMHO) though which will make that agreement moot."

That doesn't really matter.  That would just mean any actors that don't have some kind of renewal option in their contract would be safe from being replaced (if they choose to return) until the equivalent remaining time in their contract has passed.

But unless the actors themselves signed a rider that amends their current contract,  they themselves are under no legal obligation to fulfill the terms of a contract that has legally expired.