EA Settles Overtime Lawsuit
9:18 AM | Jean-Luc Dinsdale | Comment on this story
In a press release issued Wednesday, game publishing moguls Electronic Arts announced they will pay $15.6 million (USD) to settle a class action lawsuit filed by graphic artists seeking overtime compensation.
The lawsuit, filed in July of last year by a San Francisco lawyer representing roughly 200 EA employees, alleged the Redwood City-based publishing company improperly classified the employees as being exempt from overtime compensation, and sought appropriate compensation and damages.
Under the settlement, the plaintiffs will be re-classified as being eligible for overtime pay, but will no longer receive stock options, which up until recently has been industry practice for many high tech firms. The multi-million payment will cover all claims by the class action members, attorney fees, incentive payments and administrative costs associated with the suite. Any portion of the settlement left unclaimed will be donated to a national, non-profit organization that awards scholarships to minority students. The settlement still needs to be approved by a San Mateo County judge before becoming effective.
Despite this settlement, most of the firm's 6,500 employees will remain exempt from overtime, according to a company spokeswoman. A similar lawsuit, this time on behalf of a group of EA's engineers, is sill pending.
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