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Obsidian Entertainment Faces Class Action Lawsuit Over Unpaid Wages

Lena Fischer 2 min read

Obsidian Entertainment faces a class- action lawsuit in California alleging unpaid wages and labor law violations for non- exempt employees.

Obsidian Entertainment Faces Class Action Lawsuit Over Unpaid Wages
GAMES

Obsidian Entertainment is facing a class-action lawsuit in California that challenges how the studio compensates its quality assurance staff. The legal action targets unpaid wages and missing meal and rest breaks for non-exempt employees. This case draws attention from industry observers as it underscores persistent labor disputes within major game development studios. The dispute also surfaces during a period of broader uncertainty regarding Xbox studio performance and recent title sales.

California case alleges missed breaks and overtime for QA staff

The lawsuit was filed in the Superior Court of Orange County and covers alleged practices dating back to October 2021. Plaintiffs in the case include quality assurance testers who allege they worked overtime without proper compensation. The legal complaint centers on violations of California labor laws that mandate specific break periods and wage protections. These claims form the basis of the class-action suit against the developer.

Obsidian Entertainment Obsidian Entertainment
Obsidian Entertainment Obsidian Entertainment

Obsidian Entertainment has entered a formal defense against the allegations. The studio argues that the plaintiffs consented to the working conditions in question. At the same time, the company explicitly denies all accusations and is seeking a dismissal of the case. The legal team aims to resolve the matter through an out-of-court settlement to prevent further reputational damage.

Neither Microsoft nor Obsidian has provided additional comments on the ongoing legal proceedings. The case remains active in the California court system as the parties navigate the litigation process. The situation illustrates the complex relationship between labor rights and project management in the contemporary gaming industry.

Source: MP1ST