It's a morass of regulations and requirements, and everyone's trying to figure out what their exposure is," says Eric Belcher, president and CEO of Cast & Crew Entertainment Services. Adds Mark Goldstein, CEO of Entertainment Partners, which has held 16 seminars to help studios understand ACA: "It's going to be a very big deal."
Determining the exact nature of the new laws has been difficult, given that many ACA terms have yet to be worked out. Hollywood productions, for instance, might find it irksome simply trying to categorize employees as full- or part-time, seasonal or variable, and it's important that they get the classifications right lest they face hefty fines. "ACA is thousands of pages, and it wasn't written with this industry in mind," says Belcher.
One of the unintended consequences, say some industry insiders, is that it could lead to productions running to foreign countries, given that ACA doesn't apply to U.S. citizens working abroad. Some also say the number of production days in the U.S. are likely to be cut due to ACA because there's a 90-day waiting period before productions must either pay a penalty or offer health insurance to full-time workers. That rule provides big incentives for a production to wrap in less than three months. While big-budget movies and season-long TV shows might not have such a luxury, smaller films or TV pilots could easily rush their schedules to make sure they come in at under 90 days.
"Do I expect the cost of doing business to go up? Yes, I do," says Mike Rose, CEO of Ease Entertainment Services.
|Katie Pavlich is the Editor at Townhall.com. Follow her on Twitter @katiepavlich. She is a New York Times Best Selling author. Her new book Assault and Flattery: The Truth About the Left and Their War on Women, will be published on July 8, 2014.|
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