The studio denies the allegations

Image credit: Obsidian

Fallout: New Vegas and The Outer Worlds developer Obsidian Entertainment is being sued in a class action lawsuit that accuses the studio of "a systematic pattern of wage and hour violations under the California Labor Code and Industrial Welfare Commission ('IWC') Wage Orders."

As spotted by a Redditor and reported by GamesRadar+, the lawsuit – which seemingly first went to court in October 2025 – was raised by plaintiff Victoria Turner, a QA lead who reportedly worked on The Outer Worlds 2.

According to the court papers, Obsidian is accused of "increas[ing its] profits by violating state wage and hour laws" and failing to "pay all wages (including minimum wages and overtime wages)," as well as wages "due upon separation of employment." It is also accused of failing to provide meal periods and rest breaks.

The class lawsuit covers "all persons currently or formerly employed by any or all Defendants as nonexempt employees in the State of California at any time between October 9, 2021 and the date of class certification." The plaintiff also wants to certify "all members of the Class who separated their employment with any or all Defendants at any time between October 9, 2022 and the date of class certification."

It seeks monetary relief and to "recover, among other things, unpaid wages, unreimbursed business expenses, benefits, interest, attorneys' fees, costs, and expenses" in addition to "penalities pursuant" to alleged labor code violations.

In its response, Obsidian "denies, generally and specifically, each and every allegation" and calls for the suit to "dismissed in its entirety with prejudice."

In February, Obsidian confirmed it would not be making a third The Outer Worlds game after the 2025 sequel missed its sales forecasts.

Mentioned in this article