If you’re filming a feature film in the U.S., chances are you’ll need to contract with an IATSE union crew. With access to the Low Budget Theatrical Agreement, you can realize significant cost savings, and the newly negotiated 2026 to 2028 agreement brings expanded tiers, new structuring flexibility, and important new provisions around AI, safety, and enforcement.
Read on as we break down what’s changed for the 2026 to 2028 IATSE Low Budget Theatrical Agreement, what it means for your production budget.
What is the IATSE Low Budget Theatrical Agreement?
The IATSE (International Alliance of Theatrical Stage Employees) Low Budget Theatrical Agreement is a specialized contract designed for productions with budgets below the standard Basic Agreement thresholds. It gives independent and lower-budget productions access to professional IATSE crews at reduced rates, with modified working conditions suited to leaner productions.
For the 2026 to 2028 cycle, the agreement was renegotiated with higher tier ceilings, a revised definition of “Production Costs,” stricter tier enforcement rules, new AI provisions, and expanded safety and harassment obligations.
What’s New in the 2026 to 2028 Agreement?
The 2026 to 2028 update touches nearly every aspect of the agreement. Here are the most important changes for producers:
1. Updated Budget Tiers
Tier ceilings have been raised across the board. This is good news for productions that previously hovered near a tier ceiling. More room within each tier means more budget flexibility before triggering higher wage obligations.
Here’s how the new tiers compare to prior direct IATSE rates:
Tiers | CMS Productions (2026 to 2028) | IATSE (Prior) | Change |
Ultra Low | Up to $3.3M | Up to $3M | +$300K at ceiling |
Tier 1A | $3.3M to $6.875M | $3 to $6.25M | +$300K start / +$625K end |
Tier 1B | $6.875M to $9.9M | $6.25M to $9M | +$625K start / +$900K end |
Tier 2 | $9.9M to $13.75M | $9M to $12.5M | +$900K start / +$1.25M end |
Tier 3 | $13.75M to $16.5M | $12.5M to $15M | +$1.25M start / +$1.5M end |
2. Revised Definition of “Production Costs”
One of the most significant changes in the 2026 to 2028 agreement is a tighter, more detailed definition of what counts as “Production Costs” for tier qualification purposes. Production costs include above- and below-the-line and pre-production, production, and post-production costs, but a confidential sideletter now excludes a long list of items from this calculation.
This gives producers real structuring flexibility. Here’s what’s excluded:
Excluded Item | Excluded from Production Costs? | Practical Impact |
Financing costs | Yes | Structure financing without affecting tier |
Insurance & deductibles | Yes | High-risk shoots won’t inflate tier costs |
Marketing, MPAA, tech/music licenses | Yes | Spend more on campaigns without tier risk |
Fringe benefits up to $825K | Yes | First $825K of fringes are excluded for tier calculations |
Tier 3 overscale up to $1M | Yes (Tier 3 only) | Pay key talent overscale without affecting tier |
U.S. post-production labor (≤10% of budget) | Yes, if all post work is domestic | Meaningful post-production spend kept off tier calculation |
Additionally, a completion bond premium and up to 10% of the total budget as a contingency reserve are excluded from Production Costs calculations. Effectively, tiers ceilings are 10% higher.
3. Stricter Tier Enforcement and a Safe Harbor
The new agreement includes more rigorous tier overage consequences. If your actual production costs exceed the applicable tier by more than 10%:
- Certain employees must be paid as if under the full IATSE Producer Basic Agreement (BA) and Local Agreements.
- Others receive at least a 10% retroactive wage increase from day one.
- If costs exceed Tier 3 limits by 10% or more, BA and Local Agreement labor costs can apply retroactively, a potentially significant payroll hit.
Safe Harbor: If you notify IATSE at least 2 weeks before completion of all post-production that your actual costs will exceed the tier, your wage rates will automatically adjust to the next applicable low-budget tier rather than triggering full BA conditions. Proactive cost tracking and timely notification is critical.
4. Higher Wages and Benefits
The 2026 to 2028 agreement includes increased minimum rates and benefit contributions across all tiers, with further scheduled escalators in 2027 and 2028. Key details:
- Ultra Low wage floor: Minimum 125% of statutory minimum wage, never less than $15/hour, with overtime per applicable law.
- Benefit contributions (U.S.): Increased defined daily amounts by tier; producers must pay MPIPHP, CSATF, IATSE National Funds, or applicable local trust funds.
- New Training Trust Fund contribution: 0.25% of gross wages for certain employees.
- Enforcement: Evidence of a pattern of underpaying Ultra Low crew below minimums allows IATSE to retroactively bump everyone to Tier 2 minimums and conditions.
5. New AI Provisions
For the first time, the Low Budget Theatrical Agreement includes a dedicated AI article. This is particularly relevant as productions increasingly incorporate AI tools into their workflows. Key provisions:
- Producers may require employees to use AI systems or outputs as part of their job. Those employees remain fully covered by the agreement.
- Producers cannot use AI prompt usage to displace covered employee classifications.
- Producers may require employees to follow company AI policies (IP, copyright, ethics) and may require consent before workers use AI.
- Producers must indemnify employees for claims arising from AI use they directed.
Bottom line: You retain creative and operational control over AI use, but you cannot use AI as a mechanism to reduce or eliminate union classifications.
6. Enhanced Safety, Harassment, and Sick Leave
The 2026 to 2028 agreement significantly expands producer obligations in several areas:
- Harassment prevention: Formal programs required, with multiple reporting channels (including third-party services like The Hollywood Commission) and mandatory investigation procedures when a covered employee is involved.
- Safety: Safety officer designation, contact info on call sheets, and endorsement of CSATF safety bulletins. Extended workday safety guidelines (fatigue, carpooling, nutrition) are included in a sideletter.
- Sick leave: IATSE expressly waives application of many local and state paid sick-leave statutes, creating a uniform standard and simplifying administration across jurisdictions.
Producers who understand these updates will be best positioned to take advantage of the new flexibility while staying compliant.
Benefits of the IATSE Low Budget Theatrical Agreement (2026 to 2028)
The 2026 to 2028 agreement preserves the core savings that make the Low Budget Theatrical Agreement attractive, while adding new tools that give producers even greater flexibility to manage costs. Here are a few benefits the new agreement offers to producers:
1. Flexible Budget Tiers
The agreement still offers producers tiered flexibility far below standard BA rates. With new higher ceilings and CMS’s exclusive agreement providing access to the Ultra Low tier, more productions can qualify for lower wage and benefits structures.
2. Reduced Wage Scales and Modified Working Conditions
All tiers maintain reduced wage scales below regular IATSE scale wages. Ultra Low wages remain negotiable. Rate increases in 2027 and 2028 are built in, so plan your multi-year projects accordingly.
3. Meaningful “Production Cost” Carve-Outs
The new sideletter exclusions are a genuine tool for producers. Financing, insurance, marketing, fringe benefits up to $825K, and qualifying domestic post-production labor can all be structured outside the Production Cost calculation, giving you more room to invest in your production while staying within the right tier.
4. Safe Harbor Tier Adjustment
Safe harbor protection allows a production to rely on its declared budget tier without being penalized later if the final cost ends up slightly higher provided the producer acted in good faith and followed the agreement’s reporting rules.
5. Health and Pension Contributions
The agreement outlines health and pension contributions that remain more favorable than standard agreements. The new Training Trust Fund contribution (0.25% of gross wages) should be factored into your fringe budget.
6. Flexible Work Rules
Modified working conditions remain a core feature of the Low Budget Theatrical Agreement, giving productions more operational flexibility than the standard IATSE Basic Agreement. Key provisions include:
- Minimum Call: 8 hour minimum on work days; 4 hour minimum (8 hour max) on travel only days, all at straight time.
- Daily Turnaround: 10 hour rest period between wrap and next call; invading rest triggers penalty pay.
- Weekend Rest: 52 hours after a 5 day week; 32 hours after a 6 day week
- Overtime: Straight time for the first 8 hours; time and a half through hour 12; double time after 12; triple time kicks in after 15 hours, a strong built in disincentive for very long days.
- Meal Periods: First meal must begin within 6 hours of call; each meal is 30 minutes to 1 hour; delays trigger escalating penalties starting at $8.50 per half hour.
- Alternative Meal System: Productions can opt into an 11 hour elapsed day with a paid non working meal and continuous hot buffet, simplifying scheduling on lean crew shoots, provided you can support the structure.
Together, these benefits make the 2026 to 2028 Low Budget Theatrical Agreement one of the most effective ways to keep your production union compliant without sacrificing your budget.
IATSE Low Budget Theatrical Agreement FAQs (2026 to 2028 Updates)
When it comes to navigating union contracts, it is easy to find yourself with more questions than answers. Here are answers to the most common questions we hear from producers about the 2026 to 2028 updates.
- How do I determine my total production budget under the new definition?
Under the 2026 to 2028 agreement, “Production Costs” include all above- and below-the-line and pre-production, production, and post-production costs, but exclude a defined list of items per the confidential sideletter, including financing, insurance, marketing, CBA fringes up to $825K, completion bond premiums, and a contingency of up to 10% of budget.
2. What triggers a retroactive tier upgrade or BA conditions?
If your actual production costs (excluding insurance reimbursements) exceed the applicable tier by more than 10%, you risk retroactive wage upgrades or, in the worst case, BA conditions.
The safe harbor: notify IATSE at least 2 weeks before finishing all post-production and you can step up to the next low-budget tier rather than triggering full BA obligations.
3. What’s the geographical scope under the contract?
The Low Budget Theatrical Agreement applies to films with principal photography in the United States. For Los Angeles-based or LA-hired crew, your shoot falls under the Basic Agreement multi-employer unit for roster and benefit purposes, though wages and working conditions are still governed by the low-budget agreement. A Canadian supplement covers Canadian productions, and local theatrical agreements apply when budgets exceed Tier 3 limits in Canada.
4. What are the terms for post-production and vendor usage?
External vendors that are not “union shops” remain restricted. Post-production work must generally be performed by union members, primarily IATSE Local 700, paid directly by the production. Importantly, under the 2026 to 2028 agreement, if all post-production bargaining unit employees work within the U.S. or its territories, up to 10% of budget in U.S.-based post-production costs can be excluded from Production Cost calculations.
5. How do deposits and refunds work?
IATSE will require a deposit equal to the two highest budgeted payroll weeks (wages plus fringes). Deposits are fully refundable once all IA Locals confirm no outstanding wage or benefit payment issues. In practice, a portion is released after principal photography and the remainder after post.
6. What are the new AI obligations?
Producers may integrate AI tools into workflows and require employees to use them. However, AI cannot be used to displace covered employee classifications. Producers must indemnify employees for any claims arising from AI use they directed. Producers may require employees to follow company AI policies and obtain consent before AI use.
Why Work with CMS Productions as Your Third-Party Signatory?
Navigating the 2026 to 2028 agreement, with its stricter tier enforcement, revised Production Cost definitions, and new AI and safety obligations, is more complex than ever. Third party signatories can help you get it right from day one.
1. Avoid Becoming a Union Signatory
Most low-budget productions are structured as single-purpose LLCs without the production history required to sign directly with IATSE. CMS serves as your third-party signatory, so your entity doesn’t need to qualify independently.
2. Access Exclusive Tiers
CMS’s exclusive agreement with IATSE provides access to the Ultra Low budget tier and higher tier ceilings not available to producers signing directly. This is one of the most tangible cost advantages of working through a third-party signatory.
3. Mitigate Issues Before They Arise
CMS has long-standing relationships with IATSE locals and can engage directly with the union on your behalf, helping to head off grievances, resolve payroll questions, and navigate the new safe harbor notification requirements before they become costly problems.
4. Reduced Fringes
Signing through CMS unlocks reduced fringes on overtime, meal penalties, and more, maximizing the savings available under the low-budget tiers.
5. Expert Budget Structuring
With the expanded Production Cost carve-outs in the 2026 to 2028 sideletter, there’s real opportunity to structure your budget in ways that keep you in the right tier. Third party signatories can help you identify which costs qualify for exclusion and plan accordingly.
6. Payroll Deposit Management
CMS helps ensure your payroll deposit obligations are met and works to facilitate timely release of funds once post-production obligations are fulfilled.
Working with a third party signatory, you get more than compliance support. You get a production ally who knows the agreement inside and out and is invested in keeping your project on track and on budget.
Conclusion: Save with CMS Productions’ 2026 to 2028 IATSE Low Budget Theatrical Agreement
The 2026 to 2028 IATSE Low Budget Theatrical Agreement delivers real savings opportunities, including higher tier ceilings, meaningful Production Cost carve-outs, and continued reduced wage scales, while also raising the stakes on compliance with stricter tier enforcement, new AI provisions, and expanded safety and harassment obligations.
Working with an experienced third-party signatory like CMS Productions gives your production access to exclusive tiers and rates, expert budget guidance, and a trusted union liaison to protect you throughout the process.
Contact us today to learn how CMS Productions can support your next production with crew signatory services under the 2026 to 2028 IATSE Low Budget Theatrical Agreement.
FAQ’s
Most low-budget productions hire union crew by working through a third-party signatory like CMS Productions. From budget structuring and tier qualification to payroll management and union liaison, our expert team can help you. CMS can also reach out to locals from where you are shooting and request crew availability lists, making it easier to connect with qualified union crew in your specific production location.