Video game giant Activision Blizzard recently reached a $54 million settlement with the state of California over a lawsuit that alleged the company was not paying its employees properly. The lawsuit, filed in 2019, claimed that Activision Blizzard had misclassified its employees as independent contractors, which resulted in them not receiving the benefits and protections that they were entitled to under California law.

The lawsuit alleged that Activision Blizzard had violated California’s Labor Code by failing to pay its employees minimum wage, overtime pay, and other benefits. The company was also accused of failing to provide meal and rest breaks, and not reimbursing employees for business expenses.

Under the terms of the settlement, Activision Blizzard will pay a total of $54 million to its employees in California. This includes $27 million in back wages and benefits, $25 million in penalties, and $2 million in attorneys’ fees. The company has also agreed to change its policies and procedures to ensure that all employees in California are properly classified and compensated in accordance with state law.

The settlement is a major victory for workers’ rights in California, as it sends a clear message that employers must comply with the state’s labor laws. It also serves as a reminder that companies must be mindful of their obligations to their employees, and that they will be held accountable if they fail to do so.

Activision Blizzard has stated that it is committed to providing its employees with fair wages and benefits, and that it is pleased to have reached a resolution with the state of California. The settlement is expected to be finalized by the end of the year.