Activision has been slapped with a lawsuit accusing the game company of violating state and federal labor laws. Cathi Canuti, a former employee of Activision, brought the lawsuit against the second largest game publisher in the US.
The legal action against Activision alleges that the company constantly violated labor laws for a period of three consecutive years by failing to pay proper wages to employees for the time they worked. The suit also claims that Activision purposely classified workers in specific position in order to avoid paying overtime money to the employees. If Activision is guilty of the charges, they would be in violation of the Fair Labor Standards Act.
Added to these charges, Canuti also claims that the game company failed to give employees accurate records of their work hours in an attempt to underpay them. Canuti asserts that she was illegally terminated from her job when she brought these charges up to her managers. She is presently seeking to recoup unpaid wages for herself and other Activation employees who experienced similar situations. If successful, the lawsuit would also levy punitive damages and court costs upon the game company.
According to the suit, "As a direct result of the unlawful and wrongful termination by defendant employers, plaintiff Canuti has suffered substantial losses in earnings and job benefits, and has suffered humiliation and extreme and severe mental anguish and emotional distress normally associated with wrongful termination.”
Lawsuits regarding unpaid overtime and other labor violations have hit the game industry of late, due to employees becoming bolder in reporting such incidents. In 2005, EA lost a lawsuit over similar charges and was fined close to $15 million.
