Modern Family Cast Settles Contract Dispute

UPDATED 07/30/2012 at 09:55 AM EDT Originally published 07/30/2012 at 08:55 AM EDT

Modern Family Cast Settles Contract Dispute
Modern Family cast
After a serious standoff with the show's production company, the Modern Family cast can get back to doing what it does best – being funny.

Julie Bowen, Ty Burrell, Jesse Tyler Ferguson, Eric Stonestreet and Sofia Vergara will all receive big raises for the upcoming fourth season, according to the Hollywood Reporter – as much as $175,000 per person per episode, with bonuses, along with a cut of back-end profits – after agreeing new contract terms with producer 20th Century Fox Television.

That's well above their current salaries of about $65,000 per episode.

A sixth cast member, Ed O'Neill, who was making more than the others previously – about $105,000 per episode – will now be on par with them.

As part of the deal, the cast agreed to add an eighth year to their contracts. Their salaries will reportedly reach about $350,000 per episode in the show's eighth season.

The actors had originally sued to void their contracts entirely, claiming they violated California's "7-Year Rule," which prohibits personal services contracts that span longer than seven years.

Production is expected to commence shortly for season 4, which premieres Sept. 26 on ABC.

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