As previously reported, Governor Gavin Newsom recently signed into law AB 5. The controversial law narrowing the classification of independent contractors was aimed at companies like Uber and Lyft. But what does it mean for the entertainment industry?
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“Financial Core” – A Dissident Writer’s Recourse
Amid the confusion and tensions of the WGA-ATA dispute over packaging fees and agency ties to affiliated production entities, more than 7,000 termination letters have been sent out to non-franchised agents who once represented WGA members.[1] The mass firing was “mandatory rather than optional”[2] and 92% of writers who voted in favor of the Code of Conduct acted in concert as insisted by the Guild. As WGA West president David A. Goodman said, “when the guild takes action, we do so as a group… we don’t ask an individual member to take a stand. We do it together…”
The WGA has sent a strong message to the ATA through the coordinated firing, but there remains uncertainty as to how the average writer will procure employment when he or she no longer has ccess to the only person (other than the writer him/herself) that is legally entitled to procure employment—a licensed talent agent.[3]
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Deputy Lawyer; WGA Tries Preemption Route in ATA Dispute
The ongoing dispute between the Writers’ Guild of America (“WGA”) and the Association of Talent Agencies (“ATA”) took a new turn recently when the WGA announced that it would use the authority granted to it under the National Labor Relations Act (“NLRA”) to “preempt” California state law and effectively “deputize” attorneys and managers to perform acts that only licensed talent agencies can provide under California state law. While an interesting and novel approach, the underpinnings of the argument appear to be flawed and could place managers and lawyers who attempt to provide licensable talent agency services in danger—to such an extent that lawyers (in particular) may find their “deputized” activities to be outside of the coverage of their malpractice insurance policies[1].
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