January 2, 2010. Meeting called to order at 5:40pm.

Present: Barbara Heninger, Kevin Brownstein (via phone), Denise Reynolds, Jennifer Maggio, Steve Allhoff, Jordan Selburn, Kim Kay, Michael Hirsch, Dallas Carter (via phone), Jen Petersen (late); Sara Dean, and Doug Hughes

Board Members absent: Jay Steele and Steve Sammonds

This special meeting was called to address the impact of AB5 on how SBMT pays people working on our shows. It was imperative to address the issue as soon as possible because the law went into effect as of January 1, 2020 and Sara Dean needed to know how to handle payments for the current show. This meeting is in addition to the regularly scheduled January 8 board meeting.

Summaries

Steve Allhoff presented the legal background for AB5, which addresses classification of contractors vs. employees.

Jennifer Maggio and Sara Dean presented options for compliance along with the estimated financial impacts.

The slide deck for these presentations can be found here:

https://docs.google.com/presentation/d/1ggteQVkZRes4nZ7vLlSmLmJZ6jxPE4C4/edit#slide=id.g7633636c36_0_0

Motions

#1 Moved and approved that SBMT shall comply with AB5. (7 yea, 0 nay, and 1 abstention)

#2 Moved and approved that SBMT shall, for the rest of this season, move forward with Option 3, which was a hybrid of Options 1 & 2, wherein: we pay all contributors at the Option 2 -level, but use the nomenclature of Fine Artist to describe specific staff. Staff defined as Fine Artist will be paid on contract (exempt from AB5) at the higher Option 2 rate. Staff not defined as Fine Artist will be treated as employees (put on payroll) or volunteers (given expense reimbursements, not to exceed a total of $500 in one year). Specifics of options can be found in the screenshots below. (6 yea, 0 nay, 1 abstention) *

*2 more Board Members submitted votes for Option 2, but they had to leave before the hybrid Option 3 was created.

Actions

  • Sara will rewrite contracts for She Loves Me staff.
  • Sara will look at impact on South Pacific and 1940s concert.
  • Board should revisit this if there are any changes in AB5 definitions.

Meeting adjourned at 8:30pm.