Current Emmy Award nominees Ed O'Neill, Ty Burrell, Julie Bowen, Sofia Vergara, Eric Stonestreet and Jesse Tyler Ferguson refused to take part in a rehearsal for the new season last week, then filed a lawsuit against 20th Century Fox Television when their negotiations for pay raises broke down.
"It's unfortunate that things got to a public place," writer-producer Steve Levitan told reporters at ABC's press tour party in Beverly Hills, Calif. "But at the end of the day, we're all very good friends. There are a lot of people whose jobs it is to get in there and stir things up. And that's what happened."
EW.com said the new agreement means the cast is dropping its lawsuit against the studio, while all of the stars will get substantial pay hikes.
The new season of "Modern Family," which airs on ABC, is to start taping its season premiere Monday.