Employment law compliance continues to be an active risk mitigation area for film production companies and producers on film projects. Below are three important considerations to help limit exposure before the cameras start rolling.
Though contractors for discrete projects may seem preferable, the circumstances under which these arrangements will be deemed appropriate are more limited than many realize. Companies should consult qualified counsel before cast and crew begin work to determine whether each position will permit a contractor classification in view of applicable federal and state law.
While federal law considers a variety of factors, including the nature and degree of control exercised over the work, some state law tests are more restrictive. For example, in California, a worker is considered an employee and not an independent contractor, unless the hiring entity satisfies all three of the following conditions, known as the "ABC Test": (1) the worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact; (2) the work performed is outside of the usual course of the hiring entity's business; and (3) the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.
Early evaluation can help avoid a variety of...
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