Union Forces Minimum Wage At LA’s Small Theaters

Date: April 24, 2015

Most Members Oppose Move By Actors Equity

Actors Equity, the union that represents stage actors across the country is requiring small theaters, known as 99-Seat Theaters, in Los Angeles to pay actors minimum wage. Although Actors Equity promised to make exceptions, the move still attracted substantial opposition from actors and other stakeholders who wanted to maintain a system that had persisted for decades and allowed payments of small stipends. Now actors’ pay must equal or exceed California’s $9 minimum wage. The 99-Seat Theater Plan had been unique to Los Angeles and allowed actors to receive no compensation for rehearsals and as little as $7 per show. Supporters of the system argue it gave upstart actors a chance to build experience and make themselves known in a market that is notoriously difficult for young actors. “It’s a sad day for Los Angeles,” said Gary Grossman, Artistic Director of Skylight Theatre Company and an outspoken supporter of the stipend system. “We’re very disappointed that Equity acted the way they did.” Grossman was involved in the 1980s lawsuit against Equity that birthed the stipend system. Some supporters said they were considering a fresh round of legal action, but no suits were immediately filed. Equity recently held a vote of its 3,000 Los Angeles members to gauge support for the measure, and actors voted no by a 2-1 margin, and some members picketed the regional headquarters. The union pushed forward with its plan anyway but added a few small concessions. For example, the minimum wage will not be required for productions in theaters with fewer than 50 seats if they limit the run of the show to 16 performances and have a budget under $20,000.

What Happens Next

Barring an unlikely change of heart from the union, the new pay rule will go into effect next May. Any increase to the minimum wage would further threaten the financial viability of small theaters. Deliberations over increasing the wage floor are underway at the city, county, and state levels.

What This Means For Small Business

Owners of the 200 small theaters across Los Angeles face the prospect of trying to fit ballooning payroll costs into their thin profit margins. There are concerns that some theaters may be forced to close. The move shows the power that unions hold over small businesses in a variety of sectors, even when business owners and union members are in agreement.

Additional Reading

Other news media outlets covering the union’s move include the New York Times, Southern California Public Radio, CBS News, Playbill, BackStage, Variety, and several stories from the Los Angeles Times.

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