View Full Version : State Officials Close Interplay Offices

06 June 2004, 09:30 AM
Got sent this through email from my teacher at school, don't know if it was already posted,

June 7, 2004

State Officials Close Interplay Offices
Despite assurances given over the weekend by Interplay CEO Herve
Caen, that the company's fortunes were not as bleak as many Internet
reports were suggesting, California's Department of Industrial
Relations, Division of Division of Labor Standards Enforcement today
forced the company to suspend operations.

The closure followed a snap inspection of Interplay's offices by
investigators, who found the company was without workers'
compensation insurance and had not paid employees. They fined the
company $1,000 for each employee, for a total of $79,000. This is in
addition to the $179,000 already owed in back taxes, the $432,000
owed in unpaid rent and the $156,000 lawsuit pending from BioWare
Corp., for unpaid Baldur's Gate royalties.

Despite these seemingly insurmountable problems, especially in light
of cash reserves of only $1.2 million, Caen has been upbeat about
resolving the situation suggesting that employees could be back at
work this week.

06 June 2004, 04:16 PM
do those fines go to the unpaid employees? or to the state

06 June 2004, 02:50 AM
In my own (very similar) experience the employer paying the employee the unpaid wages is not enforced by government agencies... however, the employee has the right to not return to work, as well as not assist the employer with any information about project status or other pertinant information that the employer may need regarding day-to-day business until they are fully re-imbursed (possibly with interest if the employee wants to hold their a$$es to the fire) but generally if the employer can't/won't pay, the employee is SOL unless they file suit (class action or otherwise) against the company. If they do file suit... payment is generally distributed in the following order;

Secured Debt
Un-secured Debt
Contract Damages/Debt
Officer's Owed
Employees Owed

My experience was in a different state, but this is at least a possibility in CA.

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