So youre not going to lay us off, which would allow us to file for unemployment benefits? asked one employee. You just are not going to pay us any more then, making us quit ourselves.
McFarland said that he was not aware of how this affects unemployment benefits and would seek advice on the topic.
But probably not the lawyer that advised them that it was ok to keep people employed but not paid. It is essentially a constructive discharge. They can still quit and most likely get unemployment.
You'll only get paid in Fyrebux redeemable either as store credit for exclusive VIP services during Fyre Festival '18 or, if you manage to accumulate 18,000 Fyrebux, a one-day pass to Fyre Festival '18. The possibilities are limitless.
Not only can they not show up for work, but in most (if not all, just don't want to make a universal statement) they can go ahead and file for unemployment* because they have been, essentially fired from paying employment.
*This assumes that they otherwise qualify for unemployment. Each state has its own requirements.