Where the "flat" deal goes wrong
A music video producer offers PAs "$300 flat" and the day runs 14 hours in Los Angeles. If the PA is a non-exempt employee, California requires 1.5x after 8 hours and 2x after 12. Treating the $300 as covering 8 straight hours, the regular rate is $300 / 8 = $37.50, and the day is owed:
| Hours | Rate | Pay |
|---|---|---|
| 1 to 8 | $37.50 | $300.00 |
| 9 to 12 | $56.25 | $225.00 |
| 13 to 14 | $75.00 | $150.00 |
| Total | $675.00 |
That's $375 more than the "flat" figure. Even if the parties agreed the $300 covered overtime, the math only holds if the regular rate derived from it is at or above minimum wage and the hours are documented. A labor claim tends to read an undefined flat rate in the worker's favor, so the safer deal is "$300 for 10 hours" with overtime past that. The overtime calculator will back out the base rate.
Where flat rates are normal
Some people really are paid flat. Producer fees and director fees are negotiated as a sum for the picture. Editors and composers sometimes work on project fees through a loan-out company. Vendors like a VFX house or a sound mixing stage quote flat bids. And SAG-AFTRA's Schedule K-III flat deal for stunt coordinators is a union form: $1,996 per day or $7,872 per week on theatrical pictures from July 1, 2026.
Budgeting flat deals
A flat rate is easy to budget because it doesn't move with hours, which is exactly why producers like it. Make sure the deal says what's included: prep days, travel, kit rental, the number of revisions or cuts, and whether extra weeks are paid pro rata. For a flat fee paid through a loan-out, employer payroll taxes aren't owed, but union benefits may be. For a flat rate paid through payroll to an employee, fringes still apply to the whole amount.
Quick check
If the job has a start time, an end time, and someone else deciding when it ends, treat it as hourly. Price the realistic hours into a day rate or weekly rate with guaranteed hours, and keep "flat" for fees, vendors, and exempt roles.