Thomas P. Capizzi, a computer modeler who was let go as the visual effects house filed for Chapter 11 bankruptcy protection, said in a filing with U.S. Bankruptcy Court that he and other employees were not paid for about a month. He cites California’s labor code provision requiring that companies pay employees immediately upon discharge, and another provision that requires up to 30 days of additional payment when an employer “willfully fails” to timely pay those workers.
At the time that Rhythm & Hues filed Chapter 11, Capizzi and another employee, Anthony Barcelo, each filed suits seeking to recover 60 days wages and benefits under the federal Worker Adjustment and Retraining Notification Act, which requires larger companies to give employees at least two months’ advance notice of plant closings or mass layoffs. Their respective attorneys, David Reeder and Jack Raisner, have since filed an amended complaint to jointly pursue the case.
A holding company connected to Prana Studios won the bankruptcy court bidding last month for the effects house.