When Flat Rate OT Bites Back: The PA Overspend

Trying to save money by putting some of our PAs on 'flat rate' overtime instead of hourly + time and a half seemed like a smart move on paper for a low-budget indie feature. The idea was to cap their costs, especially for those long days.

What worked, initially, was the perception of cost control. Producers liked seeing a predictable number for PA wages. However, what didn't work, and really bit us, was the morale hit and the ultimate impact on productivity. The PAs, especially newer ones, quickly realized they were working 14-16 hour days for what often amounted to less than minimum wage when broken down hourly. They started to drag, take longer breaks, and the general energy on set plummeted. We ended up having to bring in additional PAs on hourly rates mid-schedule just to keep things moving, completely negating any 'savings' and actually increasing our overall PA budget line.

Now, for any production with a semblance of a budget, I always push for standard hourly rates with proper overtime. The crew works harder and more efficiently when they feel fairly compensated for their time. My question is: for micro-budget projects where every dollar counts, has anyone found a flat-rate structure that genuinely motivates and sustains crew, or is it always a false economy?