Tense negotiations on Broadway this month provide a vivid reminder of how fragile labor relations can become when economic pressures collide with workforce demands, underscoring the importance of proactive legal guidance for employers facing similar collective bargaining pressures.
After an overnight mediation session that continued until 6:00 a.m. on October 18, 2025, Actors’ Equity Association—the national labor union representing more than 51,000 professional actors and stage managers in live theater, including those working on Broadway—announced that it had reached a tentative three-year agreement with The Broadway League, the collective bargaining representative for Broadway producers and theater owners. The new Production Contract—the collective bargaining agreement that governs employment terms for actors and stage managers working on most Broadway and other sit-down commercial productions—remains pending ratification by Equity members. The tentative deal averted a strike that would have halted most Broadway shows during one of the busiest times of the year.
Negotiations between Actors’ Equity and The Broadway League intensified in the weeks leading up to the agreement. The prior contract expired on September 28, 2025, and the union warned that its health-plan fund was projected to enter a deficit as early as May 2026. Equity, a member of the AFL-CIO, sought higher employer contributions to the health fund, more sustainable scheduling practices, and enhanced workplace safety measures. According to Equity, the tentative agreement will save the Equity-League Health Fund and also address scheduling and access to physical therapy.
The Broadway League, for its part, stated to The New York Times that it had “been negotiating in good faith at the bargaining table to reach a fair contract,” and aimed for terms “both parties are comfortable with.” That position reflects the difficult financial realities confronting Broadway producers, who face steeply rising labor, marketing, insurance, and operating costs even amid record box-office grosses. Despite a record-breaking $1.89 billion in total grosses for the 2024–2025 season, many productions remain unable to recoup their investment costs, underscoring the tension between producers’ cost constraints and the union’s calls for higher healthcare contributions and improved working conditions.
Public attention on the negotiations intensified in the days before the agreement. Thirty-one members of Congress—including House Minority Leader Hakeem Jeffries and several members of the New York delegation—issued a bipartisan letter urging both sides to reach a resolution, noting that a prolonged work stoppage could have caused “significant economic disruption” to New York City’s theater district and the businesses that depend on it. The 2007 Broadway stagehands’ strike, which lasted 19 days and affected more than two dozen shows, remains a vivid reminder of the potential consequences of a shutdown.
For employers in any sector, the Equity-League negotiations underscore the importance of careful preparation when facing collective bargaining challenges. Under the National Labor Relations Act, both unions and employers must bargain in good faith over wages, hours, and other terms and conditions of employment. Early planning—including engaging legal counsel to evaluate bargaining positions, ensure lawful communications, and develop compliant negotiation strategies—helps mitigate risk, preserve operational stability, and avoid unfair-labor-practice charges. In addition to collective bargaining agreements, employers should review related leases, insurance policies, and vendor contracts to understand their exposure in the event of a labor dispute, recognizing that force-majeure and strike clauses rarely eliminate all financial obligations.
An experienced labor attorney can help employers understand the legal requirements, risks, and strategic considerations that arise in collective bargaining and strike-avoidance planning. If you have questions about collective bargaining negotiations or how to prepare for potential labor disputes, please contact the author or your attorney at McCarter & English.