Thursday, March 10, 2005

Electronic Arts pays overtime

Electronic Arts is planning to change its compensation policies so that it starts to pay overtime salary for some workers. However, Electronic Arts says that in the future those workers will not be eligible for bonuses or stock options. Compliance is a smart move, but then again, Electronic Arts is know of its excellent track record of smart moves.

This decision will fundamentally strengthen EA’s financial position against overtime claims, because people could be discouraged to make such demands now as they see that things are about to change. This could make those threatening clouds of workers’ legal challenges to go away, hence saving lot of money for Electronic Arts also the company avoids paying for past overtime, so this decision potentially affects only future personnel expenses. There are also added benefits to this decision, which relate to improved goodwill among workers and customers. At least for Electronic Arts it is a win situation.

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