Posts Tagged ‘distinction’

Presenting: What’s In A Name?

Thursday, December 18th, 2014

By Brian Taylor Goldstein, Esq.   

I work for a small performing arts organization which performs each year in a tax-payer funded, non-traditional space. The venue makes itself available for rental as an event space. In the past, we have been allowed to pay them a reduced rental rate in exchange for a full-page ad in our program and recognition as a lead sponsor. Additionally, we regularly receive glowing reviews in local and national media that prominently feature color photos and positive mentions of the venue, which our audiences and reviewers (and we!) view as critical to our work and to our experience.  This year they have asked for additional money in order to cover what they claim are increased maintenance costs. This would be a significant burden for us, as we are a small non-profit and we are already cutting expenses. We did not budget or anticipate an increase rental fee. They have suggested that they will waive the fee increase if we agree to bill them as a “presenter.” We are certainly open to the idea, but would like to understand what “presenter” typically means in this context. What would that word represent to our audiences and other organizations? What could we reasonably ask of them, financially or otherwise, in exchange for such billing? The venue does not produce, and rarely hosts other arts performances.

“Presenter” is one of those performing arts industry terms that can take on many different connotations and meanings depending upon the context and whom you ask. Legally, on its own, it is not self-defining. Like terms such as “hold”, “commission”, or “cancellation”, there is no official grimoire of terms or official definitions that are “industry standard.”  Contractually, it means whatever the specific parties agree it means.

The better, or, should I say, more meaningful question is what implications listing them as a “presenter” would have in the minds of third parties critical to you and your organization, such as your audience, reviewers, and donors.  In this context, the term “presenter” becomes more of a branding or marketing issue than anything else.

For most folks within the performing arts industry, being a “presenter” carries a curatorial implication. A presenter is usually perceived as an individual or organization that has used its own artistic judgment to select a production or performance that reflects its mission, has artistic merit, and meets the standards expected of the presenting venue or institution.  However, the general public typically approaches this far differently.

Many venues produce and present performances as well as rent their spaces out to others. Most people do not realize this, much less make a distinction—or even care. Whether the Vienna Philharmonic performs at Carnegie Hall or Applebees, the average audience member, rightly or wrongly, usually assumes that wherever they are physically sitting at the time is the entity that is responsible for producing or presenting the performance they are watching. (Chicken wings and Mozart—what a concept!) Its sort of like blaming the waiter for over-cooking your steak—whoever presents the meal will enjoy the credit or the blame.

If your venue is asking to be billed as a “presenter” then it probably means they want to be seen as having discriminating tastes in deciding whom to allow to pay their rental fee. Perhaps they want to leverage some artistic credibility for marketing purposes or perhaps they are simply trying to justify their public funding by showing that they are more than just a commercial rental space. Either way, they obviously want to ride your coat tails. Fine. You wouldn’t be the first entity to leverage a little artistic integrity in exchange for survival. By acknowledging them as a lead sponsor, your audience has probably been giving the venue credit for the success of your performances anyway. Just make sure that your program, credits, billing, and other marketing materials continue to emphasize that it is you and your artistic team that are responsible for your work. And make sure that your written agreement with them clearly specifies the exact wording of the billing they will receive. Leave nothing to misinterpretation or chance. You might even ask to have approval over any marketing or publicity the venue issues on its own.

As for what you could reasonably ask of them, financially or otherwise, in exchange for such billing: There is nothing to “ask.” They have already set the price. You would agree to credit them as a presenter in exchange for letting you rent the space for a lower fee. Now is not the time for counter offers to try and get further concessions from them. Your immediate goal should be to avoid having to find a new venue or spend money you didn’t budget for, not win a negotiation challenge on “The Apprentice.”

___________________________________________________________________

HAPPY HOLIDAYS

We will be taking a short break from the blog until January 7, 2015. 

Please click on the photo to enjoy our gift to you. 

GG Holiday 2014

Presenting the Dancing GG Arts Law Holiday Elves: Brian, Robyn and Ann

__________________________________________________________________

For additional information and resources on this and otherGG_logo_for-facebook legal and business issues for the performing arts, visit ggartslaw.com

To ask your own question, write to lawanddisorder@musicalamerica.org.

All questions on any topic related to legal and business issues will be welcome. However, please post only general questions or hypotheticals. GG Arts Law reserves the right to alter, edit or, amend questions to focus on specific issues or to avoid names, circumstances, or any information that could be used to identify or embarrass a specific individual or organization. All questions will be posted anonymously and/or posthumously.

__________________________________________________________________

THE OFFICIAL DISCLAIMER:

THIS IS NOT LEGAL ADVICE!

The purpose of this blog is to provide general advice and guidance, not legal advice. Please consult with an attorney familiar with your specific circumstances, facts, challenges, medications, psychiatric disorders, past-lives, karmic debt, and anything else that may impact your situation before drawing any conclusions, deciding upon a course of action, sending a nasty email, filing a lawsuit, or doing anything rash!

 

 

Independent Contractors or Employees: What’s In A Name?

Wednesday, April 3rd, 2013

By Brian Taylor Goldstein, Esq.

Dear Law and Disorder:

I hire musicians to perform, with me. Are they employees or independent contractors? I do not deduct taxes from what I pay them. Should I also make them sign a contract stating that they are independent contractors?

Contrary to what many believe, the distinction between who is an independent contractor as opposed to an employee is not as simple as merely making them responsible for their own taxes (and issuing them a 1099) or making them sign a contract or other document in which they affirm that they are an independent contractor. Like many legal relationships in the arts, “titles”, while not entirely irrelevant, do not in and of themselves carry any legal significance. Instead, determining whether a hired musician (or anyone you hire to provide services for you) is an employee or an independent contract requires an analysis of both state and federal regulations.

A person is an independent contractor only when free from control and direction in the performance of their services. As independent contractors are not covered by unemployment insurance laws, labor standards, or safety and health regulations, each state, as well as the federal government, have established various “factors” concerning the nature of the relationship between the parties which are used to determine whether or not a person is an employee or an independent contractor. These factors include how a person is paid, the amount of control you have over them, where their services are performed, how their services are performed, whether or not they are part-time or full-time, and even whether or not the person you are hiring is “incorporated” as a business or merely uses a “dba” and is a sole proprietor. All factors concerning the relationship between the two parties must be taken into consideration. No one single factor is controlling, nor do all factors need to be present to establish the nature of the relationship.

Not surprisingly, the “factors” can differ from state-to-state, with some states applying a more liberal analysis than others. Whereas, in some states, its almost impossible for anyone to hire an individual as an independent contractor unless the individual is incorporated as a C-corporation, S-corporation, or a limited liability company, other states afford more discretion to the employer to determine how to classify the people they hire. And the federal government has its own set of factors and guidelines. As a result, its not uncommon for the same person to be classified as an independent contractor for federal purposes (IRS, US Department of Labor, etc.) and an employee for purposes of state unemployment law and state taxes.

While all the various factors must be considered, in almost all cases the most significant factor is whether the party contracting for the services exercises, or has the right to exercise, supervision, direction or control over someone they hire. In the case of musicians and other performers: do you hire them to show up and perform their own music in whatever manner they want? Or do you direct them? Do you require them to attend rehearsals? Can they wear whatever they want or do you require specific costumes or clothing? In general, musicians or other performers who are paid to perform and are told/directed what to perform, how to perform it, where to perform, and what to wear are almost always considered “employees”, if not by the federal government, then by most state governments.

The only way to answer your specific question is to apply the applicable state and federal factors and guidelines to your specific circumstances. However, the New York State Department of Labor actually has specific guidelines and factors for determining whether performers are employees or independent contractors. You can find them at http://www.labor.ny.gov/formsdocs/ui/ia318.17.pdf Whether or not you are in New York, this is a good place to start.

_________________________________________________________________

For additional information and resources on this and other legal and business issues for the performing arts, visit ggartslaw.com

To ask your own question, write to lawanddisorder@musicalamerica.org.

All questions on any topic related to legal and business issues will be welcome. However, please post only general questions or hypotheticals. GG Arts Law reserves the right to alter, edit or, amend questions to focus on specific issues or to avoid names, circumstances, or any information that could be used to identify or embarrass a specific individual or organization. All questions will be posted anonymously.

__________________________________________________________________

THE OFFICIAL DISCLAIMER:

THIS IS NOT LEGAL ADVICE!

The purpose of this blog is to provide general advice and guidance, not legal advice. Please consult with an attorney familiar with your specific circumstances, facts, challenges, medications, psychiatric disorders, past-lives, karmic debt, and anything else that may impact your situation before drawing any conclusions, deciding upon a course of action, sending a nasty email, filing a lawsuit, or doing anything rash!