# Deal memo

Source: https://storiara.com/glossary/deal-memo
Last updated: 2026-09-14
Author: Spencer Kaufman, Storiara

> A deal memo is a short written agreement that records the basic terms of someone's employment on a production before or instead of a long-form contract. For crew it covers position, rate, guaranteed hours, overtime, kit rental, per diem, and dates. For cast it adds role, fee, billing, and work period.

## What's in a crew deal memo

Here are the terms for a gaffer on a non-union indie, as they'd appear on the memo:

| Term | Entry |
|---|---|
| Position | Gaffer |
| Start / end | March 2 (2 prep days) / March 27 |
| Rate | $600 per 12-hour day |
| Overtime | 1.5x after 12 hours, billed in half-hour increments |
| Kit / box rental | $75 per day for gaffer's box (list attached) |
| Per diem | None (local hire) |
| Mileage | Paid at production's posted rate for moves to distant locations |
| Credit | "Gaffer," end crawl |
| Payment | Payroll company, W-2; or loan-out (see attached W-9) |
| Signatures | Crew member, line producer |

Every number on that table has a knock-on. "12-hour day" defines when overtime starts, so the gaffer's 13.5-hour day earns 1.5 hours at 1.5x. At $50 per hour straight time ($600 / 12), that's $75 per overtime hour, or $112.50 for the day's overtime. If the memo only said "$600 per day," expect an argument about whether overtime begins at 10 hours or 12.

## Cast deal memos

Cast memos swap hours for role terms: character, fee (per day, per week, or a flat fee for the run), guaranteed days, [pay or play](https://storiara.com/glossary/pay-or-play) if agreed, billing position, [favored nations](https://storiara.com/glossary/favored-nations) if any, travel and accommodation, and the dates of availability. The [cast deal memo template](https://storiara.com/templates/cast-deal-memo) lays these out.

## Gaps that surface at the first payroll

When someone starts work before the memo is signed, accounting can't set them up, and the terms get argued after the fact. Memos also go wrong by leaving kit rental without an inventory list (which matters if equipment gets damaged), not saying whether the rate is a [day rate](https://storiara.com/glossary/day-rate) or a [weekly rate](https://storiara.com/glossary/weekly-rate), and paying a [loan-out company](https://storiara.com/glossary/loan-out-company) without its paperwork on file.

A deal memo is a contract in most cases. None of this is legal advice, and a lawyer should look at cast agreements and anything with backend or deferral terms.

## Where it goes

The signed memo is part of the [start paperwork](https://storiara.com/glossary/start-paperwork) packet. Accounting sets up payroll from it, the coordinator adds the person to the [crew list](https://storiara.com/glossary/crew-list), and the budget line is checked against the agreed rate. Start from the [crew deal memo template](https://storiara.com/templates/crew-deal-memo), and read [crew deal memos](https://storiara.com/blog/crew-deal-memos) for how to negotiate the terms.

## Frequently asked questions

### Is a deal memo legally binding?

A signed deal memo is generally treated as a contract, even if a longer agreement is supposed to follow. This isn't legal advice; have a lawyer review cast deals and anything unusual.

### Who prepares crew deal memos?

The production office or line producer prepares them from the rates the UPM approved. Department heads negotiate within that range for their crew, and accounting won't process payroll without a signed memo.

### What's the difference between a crew and a cast deal memo?

Crew memos focus on hours, overtime, and equipment rentals. Cast memos focus on the role, fee, number of guaranteed days, billing, and exclusivity, and on union shows they sit alongside the SAG-AFTRA contract.