The Outer Worlds 2 studio Obsidian accused of “violating state wage and hour laws” for profit in California lawsuit

Obsidian Entertainment, the studio behind The Outer Worlds 2 and Avowed, faces a California lawsuit alleging systematic wage and hour violations. The case was filed in Orange County Superior Court in the latter half of 2025 by plaintiff Victoria Turner, who claims the company engaged in a pattern of failing to provide minimum wage, overtime compensation, and required lunch and rest breaks to employees.

In March 2026, Obsidian denied all allegations in a formal response and requested that the court dismiss the case entirely. The company’s legal team refuted each claim made in Turner’s complaint, stating they would contest the proceedings.

This lawsuit highlights ongoing labor concerns within the video game industry, where studios have increasingly faced scrutiny over working conditions and compensation practices. Wage and hour violations—including failure to pay overtime and inadequate break policies—represent common grievances in employment disputes across the sector, affecting both major studios and independent developers.

The case remains active, with Obsidian maintaining its position that the allegations are unfounded. As the legal proceedings continue in California courts, the outcome could have significant implications for labor practices and employment standards at other game development studios operating in the state.

Sources