Axium Is Axed
According to Defamer, Axium Entertainment – a widely used entertainment industry payroll agency — has shut down. Popsquire wonders if, like the non-Golden Globes, this is a casualty of the strike.
When a company closes, there are numerous legal issues, but today’s post will focus on employee issues, which Popsquire finds to be extremely important.
Depending on the number of employees, a company that shuts down without warning its employees in advance may be liable to each affected employee for back pay and benefits pursuant to the Federal WARN Act.
In California and other states, employees may be entitled to payment for accrued/unpaid wages as well as vacation pay.
Popsquire will continue to follow this story. Stay tuned!
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Does chapter 7 exempt Axium from the WARN Act?
Popsquire is unaware of any express exception due to Chapter 7. However, the WARN Act does provide an exception in the event of so-called “unforeseen circumstances” that prevent a company from providing advanced notice of closure. This, of course, would depend on the particular circumstances. Some question that need answering include: How long before closing did a company know it was going to shut down? What were the reasons for the shut down? Was it due to a series of events? Or was it due to one major, unpredictable event?