California Member Advisory Regarding AB5

Many members have heard about a bill in the California legislature, AB5, which is intended to ensure that most workers in California are categorized as employees instead of independent contractors, so that their rights under labor and employment law are protected. Some individuals have asked whether there might be some impact on the ability of our members and others in the entertainment industry to continue the longstanding practice of using loan out companies as a way of ensuring fair tax treatment for performers. We want to reassure our members that AB5 will have no impact on the use of loan outs by our members. SAG-AFTRA has done exhaustive due diligence on the matter with our own in-house and outside counsel, and in cooperation with a broad coalition of entertainment unions, prominent industry CPAs, entertainment attorneys and legislative staff.  

We will continue to monitor cases, laws and regulations, including the progress of AB5, for any potential impact on our members. Your loan outs and the benefits they provide are assured, and your union will continue to make sure that remains the case.

SAG-AFTRA members have always been employees of the producers and companies who are signatories to our collective bargaining agreements. Whether you work directly for the producers, or as a joint employee of your loan out company and the producers, your legal rights are and remain protected. Nothing about AB5 will change this. Likewise, nothing about AB5 will jeopardize or change the access to supplemental retirement options through your loan outs, such as SEP-IRAs.

Loan out companies can be an important and beneficial structure for many of our members, and SAG-AFTRA members can be confident that the union will continue to ensure a supportive and secure environment for loan out companies.