Obsidian faces a class action lawsuit accused of a "systematic pattern of wage and hour violations"

First-person view of a futuristic weapon held in a gloved hand, pointing towards a desolate alien landscape with strange rock formations, glowing flora, and a dramatic planetary eclipse in a star-filled sky. — Image credit: Obsidian

Obsidian Entertainment, recognized for its work on games like Fallout: New Vegas and The Outer Worlds, is currently facing a class action lawsuit. The lawsuit claims the company engaged in "wage and hour violations" under California legislation and the guidelines set by the Industrial Welfare Commission.

This legal matter, highlighted by a Reddit user and further detailed by GamesRadar+, was initiated by Victoria Turner, a quality assurance lead linked to The Outer Worlds 2. The legal case first appeared in court in October 2025.

The allegations against Obsidian include claims of not adhering to state labor laws to increase profits, encompassing the failure to pay due wages, including minimum and overtime wages, as well as not settling all payments when employees leave. The company is also accused of not adhering to rules regarding meal and rest breaks.

This lawsuit pertains to individuals who have been employed as nonexempt staff by the defendants in California between October 9, 2021, and the class certification date. Turner seeks to include employees who ended their work with the company from October 9, 2022, to the class certification date.

The legal action aims to secure financial compensation for unpaid wages, unreclaimed business expenses, benefits, interest, attorneys’ fees, and legal costs, alongside penalties linked to the alleged breaches of labor laws.

In response, Obsidian refutes each claim presented in the lawsuit and requests the case be completely dismissed.

Earlier in February, Obsidian announced there would be no continuation of The Outer Worlds series following the underperformance of the 2025 sequel in achieving its sales goals.