# Signatory

Source: https://storiara.com/glossary/signatory
Last updated: 2026-09-14
Author: Nick Harty, Storiara

> A signatory is a production company that has signed a union or guild's collective bargaining agreement, such as SAG-AFTRA, the DGA, IATSE, or the Teamsters. Once signatory, the company can hire that union's members and must follow the agreement's minimum pay, working conditions, benefit contributions, and reporting for work covered by it.

## Signatory to what

"Is it signatory?" is incomplete until someone names the union. Each union's agreement is separate, and a production can sign any combination:

| Production | SAG-AFTRA | DGA | IATSE | Teamsters |
|---|---|---|---|---|
| Studio feature in LA | Yes | Yes | Yes | Yes |
| $1.2M indie in Georgia | Yes (low-budget) | No | No | No |
| Thesis film | Yes (student agreement) | No | No | No |
| Mid-budget streamer series in Atlanta | Yes | Yes | Yes (Area Standards) | Yes |

The $1.2M indie row is common: the producers sign SAG-AFTRA so they can cast union actors, and hire non-union crew.

## What signing commits you to

For a SAG-AFTRA film, the company agrees to pay at least scale, report every performer's hours on Exhibit G, hire non-members only under the [Taft-Hartley](https://storiara.com/glossary/taft-hartley) process and preference-of-employment rules, pay pension and health contributions, and pay residuals if the film is exhibited in later markets. The union typically asks for documents like the script, budget, schedule, and proof the company owns the rights ([chain of title](https://storiara.com/glossary/chain-of-title)), and it may require a security deposit against cast wages before the shoot.

Signing the DGA agreement means giving preference of employment to people on the [Qualification Lists](https://storiara.com/glossary/qualification-list) for AD and UPM jobs. IATSE and Teamsters agreements set crew minimums, work rules, and benefit contributions.

## Why unions care who's signatory

Union membership rules keep members from working for companies that haven't signed. SAG-AFTRA's Global Rule One says members may not work for an employer who hasn't signed a basic minimum agreement with the union where one applies. That's why a producer who wants a union actor has to sign first, and why the [signatory guide](https://storiara.com/blog/how-to-become-a-sag-aftra-signatory) is one of the first things a new indie producer reads.

## Mistakes to avoid

Signing the wrong entity. If the production LLC isn't formed yet, some producers sign their parent company, which then carries residual obligations for the film indefinitely.

Letting cast start before the agreement is final. Rehearsals and fittings count as work.

Not budgeting fringes. The agreement's pension and health percentages go on top of wages, and they belong in the budget's [fringes](https://storiara.com/glossary/fringes) section from the first draft.

## Frequently asked questions

### What does it mean when a production is signatory?

It means the production company has signed at least one union agreement. Always ask which one. A SAG-AFTRA signatory film may still hire non-union crew, and an IATSE show may have non-union cast.

### Do I need a new company for each film to go signatory?

Many independent producers form a single-purpose LLC for each film and sign that entity. It keeps each film's union obligations, like residuals, attached to that film's company. Talk to an entertainment attorney about the structure.

### How long does it take to become signatory?

It varies by union and how complete your paperwork is. SAG-AFTRA asks producers to start the process well ahead of the first day of work. Apply weeks ahead, not days.

## Sources

- [SAG-AFTRA: Global Rule One](https://www.sagaftra.org/contracts-industry-resources/global-rule-one)
- [DGA: Qualification Lists for employers](https://www.dga.org/employers/qualificationlists)