Broadway Producers Sue over Casting “Cartel”

Get Legal Help Today

 Secured with SHA-256 Encryption

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by

UPDATED: Feb 13, 2018

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

BroadwayA group of Broadway producers have sued casting companies, claiming that they formed an illegal “cartel” to raise prices.

As the New York Times reports,  the casting directors have been trying to organize a labor union. The producers have opposed this effort.

The Broadway League, a trade association that represents producers and theater owners, sued in New York federal court.

Antitrust

The complaint claims that by forming a union the casting companies would be violating federal antitrust laws:

Casting companies compete fiercely to be engaged for new Broadway shows. This competition drives down the price for casting services and controls the mounting costs of launching a new Broadway production. This case concerns a conspiracy by the dominant Broadway casting companies to eliminate this competition in violation of the antitrust laws.

The plaintiffs claim that since banding together the casting companies have demanded that producers pay a surcharge of 29% on previously negotiated fees.

Broadway Babies

As the complaint notes, about 60,000 actors are trying to get jobs on Broadway at a given time. The top-five casting agencies control over 70% of Broadway shows. The largest company controls 30% of the market on its own.

The complaint alleges that the casting companies sought the help of the Teamsters Union to force producers to engage in collective negotiations.

Teamsters Local 817 already represents casting directors in television and film.

Independent Contractors

The Broadway League objected to treating the casting companies as employees,

because those companies are not, and never have been, employees [of the producers]. They are businesses that bring to bear their own intellectual property, assets, and staff to the services they provide, and they compete in the marketplace as independent contractors.

The League suggested that the casting companies bring the issue to the National Labor Relations Board, which deals with unions. The casting companies declined, according to the complaint.

Boycott

The League said the casting companies then launched a boycott of any producer that didn’t agree to union recognition and the 29% surcharge.

The League claims that this surcharge makes a tenuous business even riskier:

Most shows fail to see a Broadway stage, and many that do close their doors not long after. Almost 80% never see a dime of profit. Controlling costs can make the difference between shows that audiences have a chance to see – with a shot at becoming a hit – and shows that are nothing more than a producer’s abandoned dream.

As Deadline reported, the casting companies say their main concern is health and pension benefits:

To be clear, the casting directors are not attempting to ‘fix prices’, neither in wages nor benefit contributions. They simply want the same workplace fairness and healthcare afforded to everyone else who works on Broadway. Broadway made over a billion dollars last year. Rather than engage in a dialogue with forty working men and women who have been instrumental to their success, the League spouts fake facts, bullies, and files lawsuits.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption