Billy McFarland, the founder of Fyre Festival, hopped on a conference call with his employees and co-founder Ja-Rule last Friday. In the nine-minute call, he explained that employees wouldn’t receive pay for the last two weeks of work.
Not just that, but they also wouldn’t be getting laid off. He asked them to work for free going forward because he was advised by his council to not pay anyone, likely because he has $0 to do so. Giving people no choice but to quit means that the employees can’t file for unemployment, further screwing them.
“After conferring with our counsel and all financial people, unfortunately, we are not able to proceed with payroll,” said the 25-year-old McFarland, “We’re not firing anyone; we’re just letting you know that there will be no payroll in the short term.”
Fyre Festival is currently facing at least seven lawsuits that total over $100 million in damages. Surely they’ll be expecting more after this.