SCEA Settles $8.5m Overtime Class Action Suit

The law offices of Shapiro Haber & Urmy have announced that Sony Computer Entertainment America has reached a class action settlement requiring the company to pay $8.5 million to current and former employees for overtime wages. The suit, Andrew Wilson v. Sony Computer Entertainment America Inc., was first filed in February of 2005 (pdf). Under the terms of the settlement, SCEA will make payments to the employees and also "reclassify class members with a job title of Associate Artist and Artist 1 as nonexempt employees under the wage and hour laws of California and the federal Fair Labor Standards Act." A statement from the law firm notes that the settlement is "contingent upon court approval, and the settlement may be rescinded if a sufficient number of class members opt out of the settlement." It also says that SCEA denies the allegations in the lawsuit and admits no liability or wrongdoing as a part of the conditional settlement. The settlement is broadly along similar lines as a previous Electronic Arts settlement in 2006 based around the 'EA_Spouse' controversy and associated lawsuits. Other firms including Activision have settled similar suits in recent months.