Galaxy Racer North America Employees Owed Back Pay

Key insights

6 takeaways

01
Approximately 10–12 full-time employees at Los Angeles-based Galaxy Racer North America and Her Galaxy have not been paid for at least two months.
02
Employees are considering a mass resignation or legal action due to the recurring nature of the payroll delays, which staff report has occurred five times.
03
Galaxy Racer leadership, including CEO Paul Roy, has attributed the payment failures to bank wire transfer complications and a pending merger with Riva Technology and Entertainment.
04
The company allegedly failed to provide promised 401K and healthcare plans, instead providing inconsistent stipends for employee-selected insurance.
05
Outstanding financial obligations extend beyond staff, with reports that the company owes money to tournament platform LeagueSpot and casters HisandHersLive for work on the $100K Apex Legends Open.
06
Under California law, employers who willfully withhold wages may be liable for penalties equal to the employee's daily wages for up to 30 days, plus additional statutory fines and attorney fees.

Summary

Galaxy Racer North America, a Los Angeles-based esports organization, is facing a severe labor crisis as approximately 10 to 12 full-time employees have gone unpaid for at least two months. Staff members are reportedly at a breaking point, actively considering mass resignations and potential legal action against the company. This situation is compounded by allegations that the organization has failed to provide promised 401K and healthcare benefits, instead relying on inconsistent, late stipends for insurance coverage.

The parent company, Qatar-based Galaxy Racer, has attributed these payroll failures to banking complications, paperwork issues, and delays related to a pending merger with Riva Technology and Entertainment. However, internal sources indicate that this is the fifth instance of significant payroll delays, undermining management's explanations. Beyond employee wages, the organization is also accused of failing to pay external partners, including the tournament platform LeagueSpot and various casters involved in the Her Galaxy Apex Legends Open.

The scope of the issue extends to the potential for significant legal liability under California labor law. Experts note that California law generally applies to employees working within the state, regardless of the employer's headquarters location. Willful withholding of wages can trigger substantial penalties, including per-violation fines and additional payments equal to daily wages for up to 30 days. As of November 2023, the situation remains unresolved, with employees and external stakeholders increasingly vocal about the financial instability and lack of transparency from company leadership.