Q: Can an entertainment company fire its entire staff and rehire everyone to do their exact jobs as freelancers?

A: Hi! I can offer some general information about this situation:

1. At-will employment: In most states, including California, employment is generally "at-will," meaning employers can terminate employees for any reason that isn't illegal (such as discrimination or retaliation).

2. Misclassification concerns: The main legal issue here is likely to be whether the workers can be properly classified as independent contractors rather than employees. There are specific tests used to determine this, such as the ABC test in California.

3. ABC test in California: Under this test, a worker is considered an employee unless the hiring entity can prove all three of these conditions:

A. The worker is free from control and direction of the hiring entity in the performance of work.

B. The worker performs work outside the usual course of the hiring entity's business.

C. The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed.

4. Potential issues: If the workers are doing the same jobs as before, it may be difficult for the company to prove that they meet all these criteria, especially B and C.

5. WARN Act: Depending on the size of the company and number of employees, mass layoffs might trigger requirements under the federal Worker Adjustment and Retraining Notification (WARN) Act or California's equivalent.

6. Unemployment benefits: Laid-off employees may be eligible for unemployment benefits, which could increase costs for the employer.

7. Legal risks: If workers are misclassified, the company could face significant legal and financial consequences, including back pay, penalties, and liability for unpaid taxes and benefits.

Given the complexity of this situation and the potential legal risks involved, it would be advisable for both the company and the affected workers to consult with employment law attorneys who can provide guidance based on the specific details of the situation.