Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

The Rules on Residual Payments

Author: Scarinci Hollenbeck, LLC

Date: January 20, 2016

Key Contacts

Back

Taking a look at residual payments

Stars of television shows often receive continued payments once their roles have ended and the sets have been shuttered, if reruns of the program continue airing.

Inevitably, all great runs of programming have to come to an end. However, these television shows often end up replayed over again nightly or weekly for people’s entertainment. Viewers aren’t giving up “Seinfeld” any time soon. Those reruns draw people back to the network to watch the programs they loved during their original runs. Compensation for the entertainers in those shows is typically required – the reruns of the programming they helped create still generate revenue long after the final scene is shot. Rebroadcasted films, just like television shows, also result in this compensation.

When and how much to expect when it comes to residuals

The payments are referred to as residuals. When individuals create a film or television show, they are paid a larger amount during the process, and smaller totals each time the work is reshown to a broadcast audience. The Screen Actors Guild and American Federation of Television and Radio Artists each successfully argued for residuals decades ago, and now the merged union takes a lead in the process of ensuring residuals are paid and educating television and film creatives on the residual process. SAG-AFTRA has myriad responsibilities when it comes to residuals. For example, the organization is available to head up lawsuits on behalf of individuals who believe they are owed payments, such as the recent case against Empire co-creator Lee Daniels. 

How much actors, writers and others receive in residual payments is based on a number of factors. For example, what sort of work are the residuals covering? Rates for commercial, film and television residuals differ. Additionally, the way a contract approaches these payments will differ depending on whether the material is shot for feature films, cable television or another medium. Union representatives or an about what sort of residual rates to expect depending on the role played and intended medium.

Always confirm whether a job calls for residuals

There are numerous cases where people should not expect to receive a residual check in the mail sometime in the future. For example, background players in film or television do not receive residuals. In addition, due to SAG-AFTRA’s role in managing these payments, if a project is not a union job, participants also should not expect to receive residuals, barring certain circumstances. 

If you have a question about residual payment totals or whether you should be receiving these royalty checks, speak with an entertainment law attorney for more information. It is also important to engage in discussion with an entertainment lawyer if you believe you are owed residuals. With an attorney you will be able to work out a plan on issues such as going to court and whether to seek the assistance of SAG-AFTRA. 

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Dissolving Your Business: Essential Legal Steps to Protect Your Interests post image

Dissolving Your Business: Essential Legal Steps to Protect Your Interests

If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]

Author: Christopher D. Warren

Link to post with title - "Dissolving Your Business: Essential Legal Steps to Protect Your Interests"
The Role of Corporate Restructuring in Mergers & Acquisitions post image

The Role of Corporate Restructuring in Mergers & Acquisitions

Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]

Author: Dan Brecher

Link to post with title - "The Role of Corporate Restructuring in Mergers & Acquisitions"
Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public post image

Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public

Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]

Author: Bryce S. Robins

Link to post with title - "Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public"
Understanding Chattel Paper: A Key Component in Secured Transactions post image

Understanding Chattel Paper: A Key Component in Secured Transactions

Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]

Author: Dan Brecher

Link to post with title - "Understanding Chattel Paper: A Key Component in Secured Transactions"
Crypto Compliance: A Comprehensive Guide post image

Crypto Compliance: A Comprehensive Guide

For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]

Author: Bryce S. Robins

Link to post with title - "Crypto Compliance: A Comprehensive Guide"
Supreme Court and Title VII: Implications for Reverse Discrimination post image

Supreme Court and Title VII: Implications for Reverse Discrimination

Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]

Author: Matthew F. Mimnaugh

Link to post with title - "Supreme Court and Title VII: Implications for Reverse Discrimination"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!