Wednesday, May 03, 2006

Activision sued for overtime pay

Recently, a lawsuit was settled between employees of Electronic Arts and the game developer/publisher over unpaid overtime. The result was a US$14.9 million payout by EA and several reclassifications of employees from salary to hourly status. However, it appears the problem may be industry-wide. Overtime compensation backlash seems to be on the rise, since a new class action suit has recently been filed against publisher Activision over unpaid overtime.

The center of the suit brought on by a former Activision animator calls into question the company's classification of digital artists as "exempt" from overtime pay and is therefore asking for restitution for unpaid overtime. Thomas Urmy, an attorney for the plaintiff, said, "Activision's Computer Graphics employees, who work many overtime hours to produce Activision's profitable videogames, fully deserve to be paid all the overtime compensation to which they are entitled under the law." Also according to Mr. Urmy, Sony Computer Entertainment America, Inc. is under fire for similar overtime compensation failures and faces its own pending lawsuit in California court.

Read more at Game Daily Biz.

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