Agency Commission Limitations: Los Angeles Members

Are you unsure what commission/fees your franchised agent is entitled to – whether you’re union or nonunion? Not sure what’s really commissionable? For more information, please review the Agency Commission Chart.

SAG-AFTRA has recently heard from its members that there is some marketplace confusion about how agents’ commissions are calculated and if they can, for example, take a commission from both the performer and the employer. In short, for theatrical, television and streaming work, an agent is required to negotiate above scale (generally, that means scale +10) in order to commission your session work. That +10 serves as a cap — it is the agent’s entire compensation.

Caveat: If you are a performer who is paid significantly above scale, it is still common for an agent to negotiate their +10 on top of that salary — but for performers who are significantly above scale, the agent may, instead, commission 10% of your gross, so long as in doing so, the agent does not invade your scale/base compensation. 

Franchised agents may collect no other miscellaneous fees or additional commissions from you or from employers. Furthermore, this 10% limitation is applicable to union and non-union work (as well as to current and future members) working in any area of the entertainment industry where SAG-AFTRA has exercised jurisdiction, e.g. Primetime, Theatrical, Subscription Streaming (or “SVOD”), Basic Cable, Pay TV, etc. 

For your reference, see generally, SAG Agency Regulations, Section XI(A) and (B), Section VIII (C)(2), Additional Agreed Interpretation #1.

For your reference, see generally, AFTRA Agency Regulations, Section XVIII (A-C) and (F).

With respect to Commercials, it is not uncommon for a franchised agent to negotiate +10 for the initial run of a commercial as well, but an agent may commission a commercial at scale, in the worst case scenario. However, an agent must negotiate above scale (again, generally scale +10) in order to continue to commission that existing commercial at the point of renegotiation. 

And finally, remember, not all residuals are commissionable. In Los Angeles, please review this chart for a quick summary of those residual areas that are commissionable, based on the market to which the show was signed: Agency Commission Chart.

This notice will differ from market to market. This notice applies solely to Los Angeles.

To download a PDF of this bulletin, please click here.

If you have any questions about this topic, please email agency@sagaftra.org or call (323) 547-6745.