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Telltale Games was the victim of a class action brought by one of its former employees, alleging that the gaming studio violated federal and California labor laws with the massive dismissal last Friday. Telltale released a statement Friday saying that the studio would begin closing down and retaining a staff of 25 people to carry out some mandatory projects, dismissing all other employees. The lawsuit of former employee Vernie Roberts claims that this measure violates the Worker Adjustment Act and the Recycling Notice (WARN).
The WARN Act, which became a federal law in 1988, requires companies with at least 100 full-time employees to give their employees at least 60 days' notice before mass closures or lay-offs. Under the WARN Act, a mass layoff is to lay off 50 or more employees over a period of 30 days or to lay off 500 or more employees in a given period. However, there are exceptions for companies that have acted on "circumstances that were not reasonably foreseeable". The WARN Act was also passed by California in 2003, with more restrictive guidelines requiring companies with at least 75 time employees to give 60 days notice of closure or layoff of 50 or more employees, and no exemption for extraordinary circumstances. Companies that violate WARN must provide compensation and benefits to employees totaling what they would have earned during the 60-day notice period.
According to the lawsuit, Telltale fired approximately 250 employees Friday without cause, without notice, without severance pay and sickness benefit expiring at the end of the month. Telltale could fight the violations of the Federal AVG in court, arguing that his situation was unforeseen because of a last-minute failure to obtain financial support. However, defending against California law will probably be more difficult. If Telltale breaches WARN, she will have to pay each terminated employee 60 days of earnings and benefits, including commissions, vacation pay and vacation pay, 401 (k), etc.
Telltale is still working to get funding to complete The Walking Dead: the final season. After certain obligations to the board of directors and the company's commercial partners, the studio plans to completely close and dismiss the rest of its team.
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Telltale Games was the victim of a class action brought by one of its former employees, alleging that the gaming studio violated federal and California labor laws with the massive dismissal last Friday. Telltale released a statement Friday saying that the studio would begin closing down and retaining a staff of 25 people to carry out some mandatory projects, dismissing all other employees. The lawsuit of former employee Vernie Roberts claims that this measure violates the Worker Adjustment Act and the Recycling Notice (WARN).
The WARN Act, which became a federal law in 1988, requires companies with at least 100 full-time employees to give their employees at least 60 days' notice before mass closures or lay-offs. Under the WARN Act, a mass layoff is to lay off 50 or more employees over a period of 30 days or to lay off 500 or more employees in a given period. However, there are exceptions for companies that have acted on "circumstances that were not reasonably foreseeable". The WARN Act was also passed by California in 2003, with more restrictive guidelines requiring companies with at least 75 time employees to give 60 days notice of closure or layoff of 50 or more employees, and no exemption for extraordinary circumstances. Companies that violate WARN must provide compensation and benefits to employees totaling what they would have earned during the 60-day notice period.
According to the lawsuit, Telltale fired approximately 250 employees Friday without cause, without notice, without severance pay and sickness benefit expiring at the end of the month. Telltale could fight the violations of the Federal AVG in court, arguing that his situation was unforeseen because of a last-minute failure to obtain financial support. However, defending against California law will probably be more difficult. If Telltale breaches WARN, she will have to pay each terminated employee 60 days of earnings and benefits, including commissions, vacation pay and vacation pay, 401 (k), etc.
Telltale is still working to get funding to complete The Walking Dead: the final season. After certain obligations to the board of directors and the company's commercial partners, the studio plans to completely close and dismiss the rest of its team.
