Julie Bowen, Ty Burrell, Jesse Tyler Ferguson, Eric Stonestreet and Sofia Vergara had been seeking a raise to $200,000 per episode from their current $65,000.
The cast will now be paid around $170,000 to $175,000 an episode for the upcoming fourth season including bonuses, according to The Hollywood Reporter.
They rejected an offer of $150,000 an episode earlier this week and later filed a lawsuit in an attempt to void their current contract. They claimed that it violated California’s ’7 Year Rule’, which prohibits personal services contracts for longer than seven years.
The dispute led to the cancellation of the first table read for season four, which was later rescheduled for July 26 as a goodwill gesture from the cast.
They will also receive a small cut of the show’s back-end profits after using The Big Bang Theory cast’s pay as a model for negotiations. Their salary will rise to $350,000 per episode in the show’s eighth season.