If you’re caught up on what’s been happening in this crazy business, you’ve probably heard that an established talent agency has come under fire for being late on processing client payments. In other words, the company hasn’t been sending actors the money they’ve earned for their work. The dollar amounts are reportedly staggering, and several parties are trying to figure out what happened.
It seems like every actor out there has the same concerns about this news: Will those clients ever see the money they’re owed? Why did the payments go to the agency instead of the actors? And how do I make sure this doesn’t happen to me?
Those are valid fears, and I’m going to address them. But first, let’s get one thing straight: The implosion of this company is a black swan event—a rare, unexpected occurrence. The last time something like this happened was over 20 years ago.
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To help you understand the situation, I’ll need to start by explaining the paperwork actors are given when they sign with an agency. In addition to the contract and information sheet, you’ll also receive a check authorization; this gives your reps the right to accept the money you earn once you book a job.
Let’s say you land a role on “NCIS.” Once the deal is closed, your agency will pass the show’s accounting department the check authorization you signed, allowing “NCIS” to send your money to the agency instead of directly to you. Does that sound suspicious? It’s not. That’s the way it works at every company I know.
Once the agency receives your check, it gets deposited in a client trust account. Your reps then have 10 business days to deduct their commission and forward you the balance along with a copy of the original statement.
Understanding the ‘Pay or Play’ Clause + What it Means for You Agents love this process because it allows us to track bookings for all of our clients. Plus, if I’m being honest, actors tend to be lazy. I’ve thrown away too many hours of my life chasing after clients who received their payment directly, then “forgot” to give me the commission. And when they finally do send the money, the amount is usually wrong because most actors don’t know what’s commissionable and what isn’t. This is a huge waste of a rep’s time—time that could be better spent finding work for their clients. That’s why we use check authorizations—they make life easier for everyone.
You should also know that agents aren’t legally allowed to touch payments that have been deposited in a client trust account. That money doesn’t belong to us—it belongs to you. And as someone who loves his collection of tailored suits, I have no interest in going to prison. Orange jumpsuits are so not my style.
If you still have doubts and you’ve already signed a check authorization, here’s the good news: You have the right to bump it the next time you book a job. Just call or visit the production’s accounting department and tell them that you want the money to go directly to you. Finally, don’t forget to send your agent the correct commission amount in a timely manner. Now, please sign on the dotted line….
This story originally appeared in the July 11 issue of Backstage Magazine.
