Rhode Island Finds 38 Studios in Violation of Labor Laws for Sudden Layoffs

Curt Schiling and 38 Studios just can’t catch a break. Moments after I finished posting a story about more bad news for some of the just-laid-off employees of the developer, I was sent this latest update on the company’s ongoing saga.

According to the Huffington Post, Rhode Island Governor Lincoln Chafee says that Schilling’s company violated federal law by not giving the state notice that they were going to lay off their whole staff. According to the article, the law states that companies with at least 100 employees that plan to let go of at least 50 employees need to give both the workers and the state’s unemployment officials 60 days notice.

In addition, the governor says that the state will launch a full audit of how the company spent the $50 million in cash it received of the $75 million loan Rhode Island had secured for it to move from Massachusetts. The governor seeks to have “everything documented” because there will be “so many lawsuits.”

Got a tip for us on this endlessly developing story? Drop us a line at news@machinima.com.

Via Huffington Post

Previous Coverage

• Reports: Amalur Developer 38 Studios Struggling to Stay Afloat
• 38 Studios Missed First Loan Repayment
• Schilling’s 38 STudios Bounces $1.125 Million Check, Can’t Make Payroll
• 38 Studios Makes good on First Payment for $1.125 Million
• 38 Studios Lays Off Employees, Says Rhode Island Governor
• 38 Studios Execs Leave, Employees Unpaid Since May 1
• Screens from Project Copernicus Appear Online
• 38 Studios Lays Off Entire Staff
• Fired 38 Studios Employees Hit with Second Mortgages on Unsold Boston Houses