Obsidian Faces Class Action Lawsuit Over Unpaid Wages and Employee Rights Violations
Amid a situation affecting all Xbox studios, it remains unclear whether Obsidian Entertainment will also face consequences, especially after reports that its latest games have not sold particularly well.
In particular, Avowed and The Outer Worlds 2, two of its most recent titles, have struggled to make a major impact. Now, alongside uncertainty about its future, the studio is facing a legal challenge.
Obsidian could end up in court following a class action lawsuit alleging unpaid wages and violations of employee rights.
Obsidian Hit With Class-Action Lawsuit Over Alleged Unpaid Wages
The lawsuit was filed in the Superior Court of Orange County, California, through a specialized law firm. Obsidian is accused of violating California labor laws and wage regulations. The case focuses on “non-exempt employees,” who have joined together in the class-action complaint.
Among those involved are quality assurance testers, who claim they worked overtime without receiving the legally required meal and rest breaks.
The employees also allege that they were not properly paid for their work or for the extra hours they put in. They claim they received no compensation for that additional effort.
The plaintiffs are asking to be paid for all the extra hours they say they worked, arguing that their additional work helped Obsidian generate more revenue. They also claim they are still owed wages, including minimum pay, and say some final paychecks were delayed.
Obsidian’s response to the lawsuit has also raised questions. According to the company’s lawyers, the plaintiffs “consented to and/or acquiesced in the alleged conduct by Defendant of which Plaintiff now complains.” However, that statement appears to conflict with another part of the defense, where the company denies “each and every allegation” and asks for the lawsuit to be dismissed.
Obsidian appears to be hoping the case will not go to trial, as a public court battle could further damage the studio’s reputation during a difficult period. The company is reportedly aiming to reach an out-of-court settlement.
The lawsuit remains open to any workers who may have been affected by these alleged practices since October 2021. For now, neither Microsoft nor Obsidian has provided additional comments. As more information becomes available, we’ll make sure to let you guys know here at MP1st.
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