Following a summer of heated salary and contract negotiations, the ABC hit's adult cast -- Julie Bowen, Ty Burrell, Jesse Tyler Ferguson, Ed O'Neill, Eric Stonestreet and Sofia Vergara -- have closed deals that will afford them substantial raises from their $65,000-per-episode payday.
One source close to the contract talks tells The Hollywood Reporter the cast will be paid $170,000-$175,000 (including bonuses) per episode for the upcoming 22-episode season.
Agreeing in principle to their new contracts with producer 20th Century Fox Friday, the actors have also dropped the lawsuit filed July 24 that claimed their current contracts were a violation of a California law that prohibits personal service contracts from exceeding seven years.
Added co-creator Christopher Lloyd: "It was a distraction more than anything. And I think the cast feels the same way. It was never arduous. Now other people can go on with the numbers and we'll go on with the letters."