05/28/2024
Some seriously bad news in coming out in California for our crew members working as loan outs. Cast and Crew was the first to share this. For now things are the same, but looks like the clock is ticking...
The California Employment Development Department (EDD) has informed Cast & Crew that payments made to loan-outs should have been paid directly to the loan-out corporation owner/shareholder as wages. It is anticipated that this will quickly become an industry-wide issue. It will not be specific to payroll processed by Cast & Crew, and would apply state-wide, regardless of payroll provider. We are monitoring this situation closely and will let you know of any updates.
This challenge appears to be targeted generally to the use of loan-out corporations in the entertainment production industry and would have a major impact on loan-outs working on countless productions in California. Cast & Crew is actively contesting the EDD’s position as well as working with union leadership and other entertainment companies to address this extremely important issue.
The EDD has indicated that they will begin sending out notices in the next thirty days to loan-out corporations under review in the EDD’s current assessment. Loan-out corporations that receive the notices will have the opportunity to join the challenge to the EDD’s attempt to invalidate the use of loan-outs by filing a petition in response to the notice.