SCEA settles overtime suit

Publisher to pay current and former artists $8.5 million, reclassify their positions as nonexempt from wage and hour laws.

The infamous "EA Spouse" scandal precipitated a pair of class-action lawsuits against Electronic Arts regarding overtime pay. Those cases were settled for a combined $30.5 million. Now the law firm that won those settlements has scored another courtroom victory against a game publisher.

Shapiro Haber & Urmy LLP today announced that it has settled a class-action labor law suit with Sony Computer Entertainment America for $8.5 million. According to the original complaint, SCEA had improperly treated many of its artists as exempt from state and federal labor laws regarding overtime pay.

While exact terms of the settlement were not disclosed, part of it requires SCEA to reclassify some of its artists as nonexempt under wage and hour labor laws. However, SCEA is denying the allegations in the suit, and the settlement specifies that the company admits no wrongdoing.

The court has yet to approve the settlement, and it could still be negated if enough members of the class-action suit opt out of the deal.

75 Comments

  • 123coolgirl

    Posted Jun 28, 2007 9:14 pm PT

    @zombey1333: a laptop cost $800+ and ps3 $659. are you going to b**** at the laptop too? ps2 was around $520 when it was release. you own one. i want the best so sony gave me the best.

  • zombey1333

    Posted Jun 28, 2007 6:28 pm PT

    I love Sony. Or rather, I like watching them like most do a trainwreck. I hope they keep falling downhill. No, I'm not an Xboxer. I have a PSX and a PS2 and a PSP. Why am I laughing at them? I laugh at anyone who wants me to shell out an entire paycheck for something that has far more power than necessary. I also don't really care for the attitude originating from their leaders towards games that aren't up with the times.

  • TrumpyTheDog

    Posted Jun 28, 2007 3:04 pm PT

    DevinB9 "Hey Sony haters, Microsoft has been sued for back overtime in the past. It is not just Sony. it is ALL BIG COMPANIES. They all suck and abuse their workers. So get real fools."

    True.

    Also true that they settle way before iy hits the courts, maybe because they don't think they can crush any complaint just because they are Sony, when they fail it makes the news... if they weren't so full of themselves then it wouldn't have reached the courts... but it did, so they settle for $8.5million but say they did nothing wrong... course not, thats why you paid up... good old Sony logic.

  • DevinB9

    Posted Jun 28, 2007 2:53 pm PT

    "Hey Sony haters, Microsoft has been sued for back overtime in the past. It is not just Sony. it is ALL BIG COMPANIES. They all suck and abuse their workers. So get real fools."

    True.

  • axia_777

    Posted Jun 28, 2007 2:32 pm PT

    Hey Sony haters, Microsoft has been sued for back overtime in the past. It is not just Sony. it is ALL BIG COMPANIES. They all suck and abuse their workers. So get real fools.

  • swyg

    Posted Jun 28, 2007 12:52 pm PT

    In the second paragraph, it says "According to the original complaint".

    Funny how Gamespot didn't post it.

  • GrimBee

    Posted Jun 28, 2007 12:18 pm PT

    The logo on this topic - makes me miss that logo even more I wish Sony used the old Sony boot up sound from the ps1 instead of the "oooooooooooeeeeee" orchestra sound.

    Ahem - anyways - It's amazing, so many people getting underpaid and THIS is put in the news hehe.

  • anamnawshad

    Posted Jun 28, 2007 11:54 am PT

    Sony: We didn't do anything wrong but we will still pay 8.5 million dollars!! We are so rich!? (Sarcasm)

  • 123coolgirl

    Posted Jun 28, 2007 11:46 am PT

    controllerface = working for gamespot, are you blind kid? go report on this http://www.360-gamer.com/news.asp?id=1143 OR http://www.smarthouse.com.au/Home/D3Q7G8S2?page=1

  • Metalhead8282

    Posted Jun 28, 2007 11:31 am PT

    Now that's some good news!!!! It's a shame when game companies try to do things like this to those who work so hard on making games, no matter if they are a success or a flop.

  • DarthKalo

    Posted Jun 28, 2007 10:27 am PT

    Playwiz, that is a serious fan boy comment. if you cannot listen to criticism, it means you have low self esteem. IT'S JUST NEWS.

  • -Squirrel-

    Posted Jun 28, 2007 8:50 am PT

    playwiz I understand where you're coming from. I can also see a skew from some of the guys at GS. BUT this is a news story and should be reported. I mean for some reason we come here instead of IGN, so GS is doing something right.

  • controllerface

    Posted Jun 28, 2007 8:49 am PT

    I find it interesting how so many people get down on Gamespot about how often they report on lawsuits with respect to Sony. Don't you guys read other websites too? Every single time i've seen an article about a lawsuit on this site, I have already seen it posted on 3 or 4 other sites before. Also, most other sites go on and on about them in their posts. Gamespot for the most part has just mentioned it happened, and that's it. Then the Sony fanboys come here in the comments and go nuts like Gamespot has personally attacked you. And on the odd occasion that there's a lawsuit announced against MS or someone otehr than Sony, you guys go into that comment thread and comment on how "it's about time someone besides Sony got sued". Look, a few years ago, Microsoft DID get sued every other day, they had their run of legal issues too. Some justifed, some not. It happens to lots of companies. That being said, many of the ones brought against Sony have a material basis. Like for example patent infringement etc. Most of MS's law problems were because of their size, and how they used that in certain business practices. Not that either company was "right" per se, but personally I feel that what MS did could have been easier chalked up to corporate brass losing sight of certain regulations because of the enormity of what they were involved in, still wrong, but with reason. In most of their cases, what Sony has been alleged (and in some cases proven) to do is to knowingly and willfully steal techonology and techniques from other companies.

    Now, i'm not trying to defend either company. Both have done wrong, and both have, or will have to pay for that wrong doing. But did it ever occur to you Fanboys to stop and think for one second? If Sony is getting sued left and right, and if all this bad press just happens to follow them around...don't you think maybe, just MAYBE they are, at least right now, doing illegal/bad/wrong/evil things? Or you know...you could keep going on about your consipracy theories, where MS pays every single news outlet all at the same time to run false stories about how bad Sony is doing... and you know, doesn't get caught or sued themselves.... because you know...that's so much more believeable.

  • kevy619

    Posted Jun 28, 2007 8:41 am PT

    "BrianC6234 Kevy619 - Why would this story make Sony a crooked company? It's a labor issue. This is actually something that needs to be figured out soon. Gamers want games right away. The game publishers do too. But the only way that will happen is if the people making the games work long hours. Doing that and getting paid overtime will add a lot to the cost of the games though. Will gaming be another industry that is forced over to China and India? Will the U.S. lose more jobs to cheap labor? I hope not. The people making games will need to be willing to make a yearly salary and work long hours or just not have jobs. It's as simple as that really."

    ok, those ppl that werent getting paid for the overtime they worked are sony employees right? So whats your point exactly?

  • BrianC6234

    Posted Jun 28, 2007 8:39 am PT

    Kevy619 - Why would this story make Sony a crooked company? It's a labor issue. This is actually something that needs to be figured out soon. Gamers want games right away. The game publishers do too. But the only way that will happen is if the people making the games work long hours. Doing that and getting paid overtime will add a lot to the cost of the games though. Will gaming be another industry that is forced over to China and India? Will the U.S. lose more jobs to cheap labor? I hope not. The people making games will need to be willing to make a yearly salary and work long hours or just not have jobs. It's as simple as that really.

  • merch

    Posted Jun 28, 2007 8:37 am PT

    no sony has enemys

  • Hvac0120

    Posted Jun 28, 2007 8:14 am PT

    Sony has better things to do than worry about a case that they can settle at this amount. It was probably worth it to them to just pay the 8.5 million and get it over with instead of having to invest time and resources to working through a lawsuit. They admit no wrongdoing, maybe that's true? Their dues are paid and they can move on to getting the PS3 to the top.

  • pixelsword

    Posted Jun 28, 2007 7:31 am PT

    When the PS3 will have a 30% or higher failure rate like the 360, then I will truly say they are corrupt. Although it sucks that they did that.

  • Yuck_Too

    Posted Jun 28, 2007 6:13 am PT

    Maybe the problem stems more from the fact Sony screws up far more often then they should.

  • Runningflame570

    Posted Jun 28, 2007 6:02 am PT

    Come on guys..not this **** again, get it together.

  • playwiz

    Posted Jun 28, 2007 2:03 am PT

    wateverboy
    this is getting lame gamespot. how much is M$ paying you? ill double it. i totally agree...gamespot is against ps3 for SOME REASON ... PS3 rocks!

  • TrumpyTheDog

    Posted Jun 28, 2007 1:34 am PT

    Every company probably does this to some extent... its just funny to see Sony getting sued every time.

    The only reason I can see for Sony always being in the news for out of court settlements is that they are so arrogant that they think they can crush every case that comes against them whilst other companies just come to a settlement before it hits the courts.

  • AnFangs_Endes

    Posted Jun 28, 2007 12:44 am PT

    @F1sTDaCuffS: yes Sony may lie here and there, but M$ is constantly lying,hiding,paying-off to keep quiet&making faulty hardware, and Nintendo used to be a card-company; what's your point? that you don't like them? well it's not them you should or shouldn't like, but their games and the qualtiy of them that you should opinionate. (I dislike M$'$ consoles because there are far too many shooters and not enough of the other stuff; also, the 360 is the console with the most hardware problems)

  • Paintballfelty

    Posted Jun 28, 2007 12:20 am PT

    I think the reason M$ never is in headlines over their lawsuits is because they settle out of court, to them money is something they can throw away, but sony isn't going to let some company take money from them freely just like the lawsuit over rumble, remember how M$ backed out and how sony took it to court, LOL i think this is the 4th lawsuit sony has been in that remotely deals with the the ps3 the last one was with the church of england, the one b4 that was with some small company over blue-ray in the ps3 (which they only targeted sony not ne other blue-ray manufacturer) then the rumble lawsuit

  • -Squirrel-

    Posted Jun 27, 2007 9:50 pm PT

    I think this is relevant to gaming. It is another kinda major law suit against a game developer. For anyone who owns stock in this company it would matter, and for anyone who is a major fan and wants to know the well being of their favorite developers. While this isn't directly about a certain game, this is a gaming industry issue and gamers should be interested in the state of the industry.

  • Pringgo

    Posted Jun 27, 2007 9:47 pm PT

    I agree with aaron5829. Maybe Sony have a lot problem with third party but M$ always have problem with his system like three of red light (hardware failure) cannot be solved until now !!!!!! M$ always have propaganda............

  • xboxps2cube

    Posted Jun 27, 2007 9:32 pm PT

    and this have to do with gaming?!

  • wateverboy

    Posted Jun 27, 2007 9:16 pm PT

    this is getting lame gamespot. how much is M$ paying you? ill double it.

  • aaron5829

    Posted Jun 27, 2007 9:03 pm PT

    America = The Land Of Sue ...

  • bigmick07

    Posted Jun 27, 2007 8:50 pm PT

    who cares, just another loss for sony

  • SergeantSnitch

    Posted Jun 27, 2007 8:47 pm PT

    @ Gamespot. Why not report everytime M$ gets sued?

  • GTA5Addict

    Posted Jun 27, 2007 8:09 pm PT

    Imagine they posted every time Microsoft got sued?

  • finaleve

    Posted Jun 27, 2007 5:41 pm PT

    dadeisvenm > They might just get away with it more, though M$ does have the money to spare.

    This is probably the only legit thing that somehow has to sue sony for.

  • Gaara79

    Posted Jun 27, 2007 5:30 pm PT

    SCEA was preggers?

    With some good games I hope : P

    When are the little bundles of joy due?

    Hope not Q4 of 08 : S

  • Pete5506

    Posted Jun 27, 2007 5:27 pm PT

    well go for them

  • 123coolgirl

    Posted Jun 27, 2007 5:19 pm PT

    AvIdGaMeR444: go add yourself to the list: http://www.xbox360forum.com/forum/showthread.php?t=39543. M$ is the one that screw up ugly.

  • lamprey263

    Posted Jun 27, 2007 4:47 pm PT

    I don't think this is Sony hating. Large companies like this always have problems like these. Microsoft and some cell phone companies were getting similar bad press because they were hiring people at their corporate offices as temps, but keeping them full time (for years) but not giving them any of the pay or benefits that the full time employees got.

  • FullSurface

    Posted Jun 27, 2007 4:42 pm PT

    Ha HA lol it's so true, why is Sony being picked on, lol, give em enough time until MGS4 comes out.

  • xAngelxDustx

    Posted Jun 27, 2007 4:38 pm PT

    @FullSurface....couldn't agree with you more lol

  • FullSurface

    Posted Jun 27, 2007 4:35 pm PT

    Hey maybe Bill Gates can sue Sony for makin a good system.

  • trigun0006

    Posted Jun 27, 2007 4:21 pm PT

    my job doesnt allow overtime either, but mine allows a kind of rollover system to my next 8 hour suit.

  • blueflamedino

    Posted Jun 27, 2007 3:57 pm PT

    I hope Sony will see beter days, Ninja Gaiden Sigma and the new Ratchet and Clank looks sweet, would hate for the PS3 to die before I get one

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