how to calculate film pay hours

Recently, I found myself in a tricky situation; a potential crew member was suggesting a wage calculation that I believed to be inaccurate. Now, when it comes to financial matters I like to be extra sure I know the facts before informing someone their math – and payment assumptions – look a little fuzzy. So, I decided to make some calls.

I reached out to my mentor Debbie Brubaker for some clarity. With over 30 years in the film industry as a UPM/Line Producer, she’s pretty much seen it all. Debbie confirmed my suspicions, and helped me gather a few resources to politely inform this person of their error.

In addition to being a valuable learning experience on handling delicate conversations about money, the whole interaction got me thinking about how film pay hours are calculated – and how utterly confusing it can be for newer or less experienced producers.

With Debbie’s expertise and some helpful insight from Cameron Woodward, the co-founder and CMO of the digital payroll company Wrapbook, I managed to peel back the curtain a bit on the complicated world of production payroll. Keep reading for some easy calculations and solid resources to ensure your financial game is on-point.

Getting Everyone on the Same Page

Debbie said both producers and crew people frequently misunderstand film industry wages. “It’s been especially hard since AB5 went into effect, but even prior to that, some people just didn’t understand their hourly rate of pay.”

AB5 – or Assembly Bill 5 – makes it harder for employers in California to classify their workers as independent contractors. This means freelancers are now on payroll as short-term employees. With film production naturally creating a sort of on-boarding/off-boarding merry-go-round, Woodward said it becomes difficult for producers to keep track of crew members – let alone their individual pay rates. Add in differing state regulations, union payment rules, plus insurance and worker’s comp, and it’s easy to get overwhelmed.

So, what can you do to mitigate some of this confusion?

For producers, Debbie recommends printing out a sheet that explains the math behind film pay hour calculations and then sending it to the crew. Having something in writing about mileage outside the Studio Zone is also wise, she advised. To stay organized, each department should have someone tracking hours. “For G+E, it’s the Best Boys; for camera, it’s the 2AC, and so on,” she said.

Most importantly, Debbie said production must be up on union rules because that effectively determines pay rates. “Follow the unions,” she summed up. “This is what the state does.”

Wondering where to get all this information? Check out the fast facts on film pay hours below for a good start, then bookmark the links provided. I go back to these sources frequently, and they have yet to let me down.

“I think transparency is important, and talking about money should not be difficult,” Debbie said. “If you think someone doesn't understand, and is having a bit of trouble - talk to your accountant or the paymaster where you do business. They may have something printed up already or can explain it in a different way. People do have learning differences … and some people just have a tough time with math. Patience is important.”

Woodward echoes Debbie’s advice, noting Wrapbook’s digital payroll software not only helps producers or in-house production accountants cut down on paperwork, but also gives cast and crew a clear view of payment status. He said Wrapbook’s sales people (who come from production themselves) are more than happy to answer questions and walk through solutions.

Full disclosure: I use this software myself, and have found it to be a great time-saver. You can learn more about it here: https://www.wrapbook.com/

FILM PAY HOURS - FAST FACTS

• According to the Fair Labor Standards Act, employers must pay hourly employees 1.5x their hourly pay for any hours worked over 40 in a week. However, crew members who work 10-hour days do not suddenly accrue 40 hours by Thursday. This is because, in the state of California, employers must also pay 1.5x the hourly rate for anything over 8 hours in one day, plus 2x over 12 hours, and 3x over 16 hours. That means, some amount of overtime is already baked into the crew member’s day rate.

Find out your state’s minimum wage laws to ensure compliance.

•  Assume a crew member is contracted to work 10-hour days. Per California law, the first 8 are “straight pay” and the following 2 are at 1.5x the hourly rate.
  
  That means, we’re working with mixed hourly rates. To unmix them, multiply the 2 hours of “prepaid overtime” by 1.5. This turns those 2 hours of OT into 3 hours of straight pay, because 2 x 1.5 = 3. By adding this to the straight time, we end up with 11 total pay hours, because 3 + 8 = 11.
  
  So, say a crew member has negotiated a day rate of $750/10. To properly calculate their hourly rate of pay in a 10-hour day, you would actually divide the $750 day rate by 11, because technically the crew member is earning 11 pay hours. That means their straight time hourly pay rate is $68.18, - not a straightforward $75.
  
  Additionally, their Overtime hourly rate in this scenario is $102.28. This is because the straight time hourly rate ($68.18) x straight time hours (8) = $545.44. Subtracting this number from the day rate (in this case, $750) gives a total of $204.56, which when you divide by the remaining two (2) hours, is $102.28.
  
  Still confused? Let technology do the work for you. This Hourly Rate Calculator makes quick work of the numbers. For a deeper breakdown on manual calculations, you can find some useful examples here.
  

• Cast and crew members must be given their first meal break within six hours from the time of first call. The second meal break must be called within six hours from the time of call back from the first meal break. Each meal break must be no less than thirty minutes, but the producer can deduct actual time up to one hour spent at meals.
  
  Click here for more information on meal periods and meal penalty payments.
  

• Portal-to-portal pay is an employee's earnings from the time they step foot on their employer's property until the time they leave. Crew is only paid portal-to-portal if they are working, i.e., driving the Grip Truck. In this case, their clock starts at truck pick-up and is considered portal-to-portal. Otherwise, travel time does not start until outside the Studio Zone, which for producers in San Francisco, is 30 miles from 5th St & Market St.
  
  Visit the California Film Commission to learn more about the Studio Zone.
  

•  The easiest way to stay up-to-date on labor laws and tax codes is to follow the unions. Some of the major players are the IATSE, DGA, and Teamsters.
  
  If you’re in California, here is a full list of Entertainment Industry Associations, Guilds, and Unions.