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SUMMARY OF LOW BUDGET SIDELETTER
TO THE DGA BASIC AGREEMENT
The DGA's Low Budget Sideletter covers films intended for theatrical or home video/DVD release with budgets up to $9.5 million, and is effective from July 1, 2008 until June 30, 2011. The Agreement has several levels:
- Level 1a: Films with budgets from $0 but equal to or less than $500,000.
- Level 1b: Films with budgets greater than $500,000 but equal to or less than $1,030,000.
- Level 2: Films with budgets greater than $1,030,000 but equal to or less than $2,570,000.
- Level 3: Films with budgets greater than $2,570,000 but equal to or less than $3,605,000.
- Level 4: Films with budgets greater than $3,605,000 but equal to or less than $9.5 million.
The Sideletter clearly defines how a film will be categorized for residual payment purposes before production even starts. This is important because it has become increasingly difficult for an independent producer to determine what the primary release platform—theatrical, home video/DVD, etc.—will be for a particular film until it is completed and screened for potential distributors. Previous DGA LBAs did not sufficiently address this issue, whereas this one does.
The key terms of the new Low Budget Sideletter include:
MINIMUM SALARIES:
Directors:
- Levels 1 and 2: Compensation shall be subject to negotiation between individual employee and employer for films with budgets less than $2,570,000.
- Level 3: $75,000 for films budgeted between $2,570,000 and $3,605,000.
- Level 4a: 75% of scale for films budgeted between $3,605,000 and $7 million dollars.
- Level 4b: 90% of scale for films budgeted between $7 and $9.5 million dollars.
AD/UPMs:
- Level 1a: Compensation shall be subject to negotiation between individual employee and employer for films budgeted under $500,000.
- Level 1b: 33% of scale and no production fee for films budgeted for less than $1,030,000.
- Level 2: 50% of scale and a production fee of $25/week for films budgeted between $1,030,000 and $2,570,000; the daily production fee is $6 if employed on a daily basis.
- Level 3: 60% of scale, a production fee of $200/week for UPMs and 1ADs, and a production fee of $150/week for Key 2ADs for films budgeted between $2,570,000 and $3,605,000.
- Level 4a: 70 % of scale and production fees for films budgeted between $3,605,000 and $5,150,000.
- Level 4b: 80% of scale and production fees for films budgeted between $5,150,000 and $7 million.
- Level 4c: 90% of scale and production fees for films between $7 and $9.5 million.
Additionally:
- AD/UPMs do not receive Vacation, Unworked Holiday Pay and Distant Location Allowances at Levels 1 - 4b.
- AD/UPMs do not receive Completion of Assignment pay at Levels 1 and 2; Completion of Assignment pay is per the DGA Basic Agreement at Levels 3 and 4.
- AD/UPMs receive reduced Extended Workday payments at Levels 1-3.
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PENSION, HEALTH AND RESIDUAL PAYMENTS:
- At all levels: Pension and health contributions to all directorial team members at the same rate as films made under the DGA's Basic Agreement (currently 14% for Directors and 14.5% for AD/UPMs).
- At all levels: Full residual payments to all directorial team members at the same rate as films made under the DGA's Basic Agreement.
QUALIFICATION LIST REQUIREMENTS:
- Level 1-2: Motion pictures produced entirely in the Third Area, as defined in Article 14 of the BA (i.e., the area of the United States which is outside Southern California and outside the New York Area), Employer may hire two individuals on any of the applicable Qualification Lists to work in the next higher Qualification List category than the one on which they are placed. For example, a Qualified Second Assistant Director may be employed in the Third Area as a First Assistant Director.
- Levels 1-3: Employers can hire one directorial team member not on any Qualification List. All other DGA hires must be at least on the Third Area QL.
- Level 4: Employers must give preference of employment to Employees as provided in Article 14 of the BA. However, on productions based in the Southern California area or the New York area, Employer may employ one Assistant Director or one Unit Production Manager who is on the Third Area Qualification List if the Employer has made a reasonable effort to find someone on the appropriate Qualification List and can document such effort.
STAFFING:
- Levels 1-3: All additional ADs after the Key 2AD can be paid at the Additional Second AD rate.
- Level 4a: The Second 2AD will be paid 70% of 2nd 2AD scale.
- Level 4b: The Second 2AD will be paid 80% of 2nd 2AD scale.
- Level 4c: The Second 2AD will be paid 90% of 2nd 2AD scale.
TRAVEL:
- Directors and their teams can travel in lower than first class in certain situations.
CUTTING TIME:
- Levels 1 and 2: Same number of days as shoot, with a minimum of 20 days.
- Level 3: 8 weeks.
- Level 4: 10 weeks (per BA).
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For more information about the DGA Low Budget Sideletter or DGA-IPA Low Budget Agreement, please contact:
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| Los Angeles: |
Lisa Layer |
(310) 289-2067 |
| New York: |
Bart Daudelin
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(212) 581-0370
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| Chicago: |
Dan Moore
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(312) 644-5050 |
For specific contract questions please contact:
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| Los Angeles: |
Barbara Berman
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(310) 289-2008
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| New York: |
Bart Daudelin |
(212) 581-0370 |
| Chicago: |
Dan Moore |
(312) 644-5050 |
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