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EA To Pay Overtime
EA To Pay Overtime
Stock Option Trading Electronic Arts has internally announced a policy change with regard to employee pay. The company says that it plans to start paying some works for work done outside of their contracted hours.
The announcement was made in a company-wide memo from EA's Human Resources Director, Rusty Rueff. "The employment environment at EA was built to allow you flexibility as professionals, with the expectation that time on the job could be managed without watching the clock. Unfortunately, labor laws have not kept pace with this spirit of entrepreneurialism, innovation and creativity. Hourly compensation marks a profound change in the entrepreneurial culture of EA and Silicon Valley," Rueff wrote.
Unfortunately, Rueff also said that this new announcement, "will come with trade-offs". The first trade-off: the employees eligible for overtime play will now have very structured work days and structured work hours. The second trade-off: employees elegible for overtime will no longer be eligible for options or bonuses. In addition, a significant percentage of EA's employees are affected by pending lawsuits, so their pay status will not change until legalities are resolved.
The announcement comes after a number of lawsuits against EA, and complaints from "EA widows," spouses of EA employees who wound up with limited access to their partners due to the extreme amount of overtime work.
For ease, remember that a week's pay is the total eligible pay (excluding voluntary overtime but including relevant bonuses) over the 12 week period divided by 12.
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