Popsquire

Since Popsquire last wrote about the Axium Entertainment shut down, two important pieces of information have surfaced.  According to the LA Times, Axium filed for Chapter 7 Bankruptcy due to a “liquidity crisis,” and a company representative stated that there would be a “seamless” transition of payroll services to competitor payroll companies. 

Popsquire’s perspective…

If the shut down was due to an unforeseeable liquidity crisis, it’s possible that Axium may not be required to comply with the advance notice requirements that Popsquire discussed in this previous post.  Of course, it depends on the particular facts of any alleged unforeseeable event that may have led to the shut down. 

If the transition is seamless and if people are paid, Popsquire will be happy to report good news.  If people are not paid, however, Popsquire predicts a legal predicament.  It may be the studios that take a hit because, if they are the employers, then they likely are ultimately responsible for making sure people get paid, regardless of Axium’s shut down.   

If you have any knowledge of the reality of this transition, talk to Popsquire. 

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!