Facts

The putative class consisted of approximately 600 image production employees ("IPE") in California who were employed with defendant Electronic Arts Inc. ("EA"), Redwood city, from July 29, 2000 to July 29, 2005. Defendant EA is a computer-gaming company. The lead plaintiffs for the case are Jamie Kirschenbaum, Mark West, Eric Kearns and Gianni Aliotti.

PLAINTIFF CONTENTIONS:
Plaintiff Kirschenbaum asserted that he produced, copied and installed computer images for use in defendant EA's video games. Further, he alleged he sometimes worked 80 hours a week and was not paid overtime. He also contended was told he was exempt from state laws that required employees who work over 40 hours a week be overtime.

Plaintiff Kirschenbaum brought a class action against defendant EA, alleging failure to pay overtime wages. He also contended that defendant EA improperly exempted IPEs from overtime. The plaintiffs' counsel opined that defendant EA repeatedly, willfully and intentionally violated certain sections of the California Labor Code. Section 510 entitles workers to time-and-a-half for hours worked over eight hours a day or in excess of 40 hours a week. It provides for twice the regular rate for hours worked over 12 hours a day. Sections 201 and 202 provides that all wages must be rendered upon termination or within 72 hours of resignation. Section 203 provides that all unpaid wages must be garnished in semi-monthly payments.

Plaintiff also contended that Officers for defendant EA were aware of the plaintiffs' duties and work hours. Therefore, by failing to appropriately compensate the plaintiffs, defendant EA acted maliciously, oppressively and/or fraudulently.

DEFENDANT CONTENTIONS:
Defendant EA denied the allegations. It argued that a class action was inappropriate and that the IPEs were exempt from overtime under California law.

Damages

In addition to injunctive relief, the plaintiffs claimed an unspecified figure to cover the statutory penalties, damages, punitive damages and restitution. They also sought interest, attorney's fees and expenses under the California Civil Code.

Result

The case was settled for $15,625,000, and EA agreed to reclassify some of the IPEs as eligible for overtime. This amount will be distributed proportionally to the class members according to their salaries earned during the class period. Attorney's fees, costs and incentive payments awarded will be deducted from the amount before the distribution to the class members. Plaintiff Kirschenbaum will receive an additional $30,000. Plaintiffs Kearns, West and Aliotti will receive an additional $15,000. Unclaimed funds will be donated to the Jackie Robinson Foundation, which awards college scholarships to people of color. The settlement had a non-admission of liability clause. The parties agreed to a stipulated class certification for settlement purposes only.