Low Budget - What to charge workers?

[projectaero]

Hey guys,
If one has a production company and you get friends/family to help you with the production side of things, do you legally have to pay them? or is it if it sells you have to pay them then?

 

[citychik]

Legally you don't have to pay anyone anything...

This is true, unless they're in a union.

However, if you have someone sign a contract, it's really only technically a legally binding contract if they are paid - but you can literally pay $1 in order to accomplish that....

A contract does not need monetary compensation to be legal -- all it needs is an agreed-upon exchange, whether goods, services, or whatever. Doesn't have to be money.

An attorney recently wrote this on another forum where they discuss contracts, legal issues, etc.:
"A contract requires 3 things - an offer, an acceptance, and "consideration" or an exchange of value. Even if it's a "peppercorn" or one dollar, that's fine."

I recently entered into a contract where I stated there will be no monetary compensation; but there will be an exchange of goods (goods for service). It's totally legal and will stand up in court.

but that's getting really really technical, like it would only matter if they took you to court with a good lawyer, for all other/ regular purposes just having them sign a contract saying that they'll work for free will cover you.

I don't think it's a good idea to go into anything thinking you wouldn't need a legally binding contract because you just don't think anyone's going to sue you. You need legal contracts for other reasons - for insurance, copyrights, to avoid any questions about who's responsible for what, even some festivals require them. Nothing wrong with learning what elements belong in a legal contract, what elements aren't necessary, and how to cover your ass.

 

[M1chae1]

You need legal contracts for other reasons - for insurance, copyrights, to avoid any questions about who's responsible for what, even some festivals require them. Nothing wrong with learning what elements belong in a legal contract, what elements aren't necessary, and how to cover your ass.

I think you're talking about a 'release form' signed by the actor. That's different than a contract, if I'm not mistaken. A 'release form' will cover your ass in terms of using the actor's image any way you want to. A contract would be a different form to fill out--here you can discuss compensation and the likes...

Am I correct?

 

[CeraGraves]

An attorney recently wrote this on another forum where they discuss contracts, legal issues, etc.:
"A contract requires 3 things - an offer, an acceptance, and "consideration" or an exchange of value. Even if it's a "peppercorn" or one dollar, that's fine."

I recently entered into a contract where I stated there will be no monetary compensation; but there will be an exchange of goods (goods for service).

I think we're pretty much saying the same thing - you need to give and recieve something tangible in order for the contract to be complete. In film school we were told to just pay $1 that way there could be no questions asked and the contract would be completely legal - if you get into trading services, it's more of a gray area and could potentially cause problems, in my opinion, such as when is the job really done, are the services provided to the "stanards" of those contracting them - if you just pay $1, it's clear, cut and dry, done.

 

[M1chae1]

Sarah...get back to work. Don't you have a commercial to edit or something?

 

[Gonzo_Entertainment]

His questions pretty much answered, but just as a point of principal (for me) on pay for micro-budget films. If you have a specific technical skill and experience using that skill I will pay you. On my last film I paid the DP, the Makeup person, the Sound recordist, the editor, and the first Assistant Camera (because we were using his camera). PAs, ADs, Grips, line producers, etc.. all worked for free.

 

[M1chae1]

His questions pretty much answered, but just as a point of principal (for me) on pay for micro-budget films. If you have a specific technical skill and experience using that skill I will pay you. On my last film I paid the DP, the Makeup person, the Sound recordist, the editor, and the first Assistant Camera (because we were using his camera). PAs, ADs, Grips, line producers, etc.. all worked for free.

That's usually a good way to run it on a micro-budget set.

 

[Blade_Jones]

Yes. Get releases for everyone. If they refuse you may still be protected.

I recently encountered an asshole, arrogant actor who was paid for his work, then a couple of years later began demanding "points" when I asked for him to sign a release. He cashed his check (for his work) but the producer never had him sign a release. He thought he had an ace up his sleeve - he was clueless! I was told by an attorney that there is a binding verbal contract in effect. When an "actor" acts on a "movie set" the intent is obvious that they know that they are going to be in a movie. This coupled with "consideration" is all that is needed if push comes to shove. I was told that I could actually sue HIM if and when it ever becomes a problem (ex - distributor requires it). Actors actually have a DUTY to sign a release, even more so if they do nothing to mitigate any "problems" that they might later claim (example: I didn't know that I was expected to be nude in the scene).