Working with Actor Employment Agreements + Free Templates

What’s an Actor Employment Agreement typically used for? 

An Actor Employment Agreement for non-union and union talent is the formal contract between a production company and the actor (or their loan-out company) that outlines the terms of their engagement on a project. 

These agreements are used across all types of productions—from feature films and TV shows to commercials and digital content.

The agreement governs the working relationship, establishing everything from compensation and schedule commitments to ownership of the performed work and conditions for termination.

Why should you use an Actor Employment Agreement?

It might seem tempting to bring an actor onto a project with just a verbal agreement or a hand shake deal. After all, who wants to do paperwork?  But no matter how much you trust your talent or much they trust you, having a written Actor Employment Agreement for non-union and union talent is crucial for several reasons:

1. Legal Protection: A written agreement serves as clear evidence of what was agreed upon, providing protection for both parties if disputes arise.
2. Clear Expectations: The agreement explicitly states what's expected from both the production and the actor, including work schedule, compensation, and deliverables.
3. Rights Management: An Actor Employment Agreement establishes who owns the rights to the actor's performance and how that content can be used. This is increasingly important (and complex!) in the age of AI. 
4. Budget Control: By clearly defining payment terms and additional costs (like per diems or travel), you can better manage your production budget. You will be protected against any last minute requests for expensive perks 

What does an Actor Employment Agreement usually include? 

Actor Employment Agreements should begin with the fundamental details: the actor's name and contact information, production company details, project title, and a clear description of the role being filled.

A comprehensive Actor Employment Agreement should then lay out the specific terms of employment. You’ll want to include precise start and end dates, the anticipated shooting schedule, and any exclusivity terms that might prevent the actor from taking on other projects during the production period.

Next, your Actor Employment Agreement should include the details of the actor’s compensation. Start with your talent’s base pay but make sure to outline the complete financial picture, including the payment schedule and any additional compensation like residuals or bonuses, per diems and travel arrangements, and overtime rates. 

When working with SAG-AFTRA talent, this section becomes even more detailed. You must make sure to comply with union-mandated rates, required pension and health contributions (typically 19.5% of gross earnings), and specific provisions for meal penalties and rest periods between workdays. Plus, you’ll also need to address SAG's requirements for overtime, holiday pay, and travel time. 

The rights and ownership section specifies how the production can use the actor's performance. This is where talent grants the right to use their name and likeness, including details of how they will be credited in the final product.

For SAG-AFTRA talent, this section of the Actor Employment Agreement must adhere to union requirements regarding credits (including size, placement, and duration of screen credits) and residual payments for different distribution channels. 

SAG agreements also include rules around the reuse of footage, particularly for projects that may be redistributed across multiple platforms or repackaged for different markets.

Finally, a complete Actor Employment Agreement should cover provisions to protect sensitive production information (no spoilers!), conditions under which either party can terminate the agreement, force majeure clauses for unexpected circumstances, and arbitration provisions for dispute resolution.

While some of this might seem like boilerplate legal language, it’s better to be thorough and make sure the Actor Employment Agreement fully protects both the production and the talent.

What are the typical differences between a contract for a non-union actor versus union actor?

Depending on the scale of your production and the type of talent you are working with, it’s important to know the differences between a union and non-union contract. (It’s also important to note that if you want to use SAG-AFTRA talent on your project, you must be a SAG signatory, which requires filling out additional paperwork.)

Generally, non-union Actor Employment Agreements offer more flexibility in their structure and execution. These contracts allow you to negotiate rates, working conditions, credits, re-use rights, perks, and anything else you or the talent wants to include. If you both agree and sign the deal, no other considerations have to be made.

In contrast, SAG-AFTRA Actor Employment Agreements are much more rigid and must adhere to established minimum rates that vary by project type and budget level. In addition to some of the details outlined in the sections above, SAG agreements include strict working condition requirements, with precisely defined meal breaks and rest periods that can result in penalty payments if ignored.

Your production will also be responsible for paying into a union actor’s pension and health funds . You’ll also find that overtime and penalty payments are set in stone with no room for negotiation. 

For up-to-date information on the latest SAG deal, check out our guide to 2023’s SAG agreement.

Who normally is involved in the contracting of an Actor Employment Agreement? 

An Actor Employment Agreement for non-union or union talent will usually be negotiated by a producer or other representative of the production and the talent and/or their representation. This might mean negotiating with their agent or entertainment lawyer or both. 

While the deal points negotiated by SAG’s collective bargaining must be adhered to, the union itself is not usually involved in negotiating individual actors’ contracts.

Wrapping up

Having proper Actor Employment Agreements in place is essential for protecting your production and maintaining professional relationships with talent. Whether you're working with union or non-union actors, start with our customizable templates to ensure you're covering all the essential elements of these important contracts.

For more information on union and non union contracts, be sure to check out our articles on how to cast non-union talent in a union project and how to fill out SAG Exhibit G—an essential form for union productions.