The entertainment industry is undergoing a profound transformation. Traditional studios and independent production companies are being swept up in a wave of mergers, acquisitions, and strategic consolidations.
These developments promise scale and efficiency that will give media giants a competitive edge. For the people who actually make movies, television shows, and live events happen, the shift raises serious questions about career stability, bargaining power, and legal protections on the job. That is especially true for entertainment workers in California, the industry’s epicenter.
At Justice Law Corporation, our California employment class action attorneys help working people in Hollywood and across the state fight back to protect their rights on the job. We are seasoned attorneys who have dedicated our careers to assisting people in wage and hour, discrimination, and other cases.
The wave of consolidation sweeping through the entertainment industry in the last decade has accelerated sharply in the last two years. Here is what working people need to know about the impact and their legal rights.
Hollywood’s Merger Era
The streaming wars are among the several factors driving consolidation in Hollywood.
The rise of Netflix and consumers cutting cords in favor of streaming platforms prompted companies to chase eyeballs by pouring money into content, technologies, and distribution deals. Many of those moves have not exactly panned out, creating financial pressures for some of the entertainment industry’s biggest players.
Take the behemoth currently known as Warner Bros. Discovery, for example. The conglomerate, which is in the middle of a bidding war between Netflix and Paramount, is set to be sold for the third time in less than a decade. It was renamed WarnerMedia after being sold to AT&T in 2018 and renamed again when it was sold to Discovery four years later.
No matter which suitor winds up landing Warner Bros., the deal threatens to make an already bleak picture for Hollywood jobs even worse. Entertainment jobs decreased by about a quarter during a recent two-year span, according to one report. Previous mergers, including the two recent Warner Bros. deals and the transaction that changed control of Paramount, have resulted in deep job slashing. Netflix and Paramount have already signaled that they plan to significantly reduce costs if they acquire Warner Bros. this time around.
Consolidation tends to reduce overall output. Data from past mergers shows that companies often decrease the number of films or series they release under established labels after the deals. They choose to focus on fewer, big-budget titles rather than wide creative slates.
This means fewer opportunities for emerging writers, directors, and independent producers. It also means less work in the greater ecosystems, from local caterers and equipment rental to visual effects shops.
The list of those at risk shows just how vast the industry’s reach is as an employer. Jobs likely to be on the chopping block include:
- Studio executives
- Corporate staff
- Production crew
- Writers and showrunners
- Support services (legal, finance, marketing)
- Distribution and exhibition roles
Even workers whose roles are retained may see reduced hours, fewer project opportunities, and tougher contract renewals. More competition for a smaller pool of jobs gives employers leverage to squeeze working people on wages and other terms and conditions.
More Gig Work
Many entertainment workers already work in a gig-based model, with employment tied to specific productions or seasonal work. Consolidation is likely to exacerbate the trend, prompting employers to try to classify more people as independent contractors.
Independent contractors, unlike employees, are, by law, treated as self-employed entrepreneurs and are not covered by minimum wage and overtime pay requirements. They also do not get protections like severance pay, unemployment insurance, workers’ compensation, and continued healthcare coverage when layoffs happen.
Misclassification – the tagging of a worker as an independent contractor when the person should be classified as an employee – is rampant across the entertainment and other industries. It is also a form of wage theft. To legitimately qualify as an independent contractor, a person must exercise significant control over how he or she performs the work and meet other requirements.
Legal Rights for California Entertainment Workers
There is at least some good news for people swept up in the chaotic shift in the entertainment industry. California has robust labor and employment laws designed to protect working people across the state. It is crucial to have a general understanding of how they work.
Layoff Rights
State and federal WARN laws require employers to give employees advance notice ahead of mass layoffs.
The California version (CalWARN) is more expansive than the federal law. CalWARN requires employers with 75 or more employees to give at least 60 days’ notice before layoffs of 50 or more employees. The law is meant to help impacted workers – and their unions – try to plan financially and begin seeking jobs elsewhere.
The truth is that employees have little power to prevent layoffs. Those who work in unionized workplaces covered by collective bargaining agreements tend to have the most protections, including severance pay, rehiring rights, and continuation of healthcare benefits.
Discrimination and Retaliation Protections
Employers have significant leeway to hire and fire or lay off employees, but they cannot do it in a way that is discriminatory or retaliatory.
Federal and state laws in California and Washington ban discrimination based on a number of protected characteristics, such as:
- Race
- Gender
- Pregnancy
- Disability
- Age
- Religion
- Sexual orientation
- Gender identity
An employee accusing his or her employer of unlawful discrimination has to be able to show that the employer’s decision (who to lay off, whose hours to cut, etc.) was motivated at least in part by protected characteristics. That means establishing that the move was not just about a business slowdown or reorganization, or because the employee was performing poorly.
State and federal laws also protect workers from being targeted for speaking up on the job. Employers are banned from penalizing employees for reporting unlawful conduct, whether it is through internal complaints or filings claims with enforcement agencies. Employers cannot retaliate by firing such workers, even in layoff situations.
Our California Employment Class Action Attorneys Can Help
If you believe that your employer is violating your rights on the job, whether it is by being underpaid or in other terms and conditions, you do not need to go it alone. A California employment class action attorney at Justice Law Corporation can help you evaluate your claim and understand your rights and options. Our office is conveniently located in Pasadena. Contact us at (818) 230-7502 to schedule a free consultation with a California employment class action attorney.
