Common use of Payroll Deposit Clause in Contracts

Payroll Deposit. A. In situations where the Union has reason to be concerned over the financial viability of a signatory Employer to this Agreement, other than a signatory to its predecessor, or where a signatory to this Agreement or its predecessor has not met its financial obligations, in order to secure performance, the following shall be applicable: (1) The Union may require the Employer to deposit with the Union (or payroll service approved by the Union) an amount equal to the two highest budgeted payroll weeks of estimated payroll and fringe benefit contributions for covered employees. Such amount shall be reduced by consent of the Union upon completion of principal photography to an amount appropriate for post production and released upon completion of post production and verification by the Union that all contractual obligations have been met by the Employer. (2) Deposited amounts may only be drawn upon for the sole purpose of satisfying amounts owed to covered employees under this Agreement. (3) In the event a payroll service is to be utilized to hold and/or guarantee the deposit, the Employer shall provide the Union with written verification of the payroll service’s consent to do so which must be executed by the payroll service. (4) Failure to make the required deposit as set forth herein shall be deemed a material breach of this Agreement.