The creators of Fallout: New Vegas have been accused of breaking the law and getting richer while their workers were paid less than they were owed. Obsidian Entertainment has denied every allegation in the class-action lawsuit filed in October 2025 and is seeking to have the case dismissed in full.

Workers’ rights have long been a constant point of debate in an industry where companies were historically so shielded that what happened behind closed doors often remained unknown. The focus is now on Obsidian Entertainment, the studio behind Fallout: New Vegas and The Outer Worlds 2, which is going through a doubly difficult period. Not only could it be affected by Xbox budget cuts, but it is also facing a class-action lawsuit over alleged systematic violations of California labor law.

The lawsuit, first reported by GamesRadar+ and verified by GamesIndustry, was filed by Victoria Turner, a quality assurance manager who worked on The Outer Worlds 2. According to court documents, the case dates back to October 2025 and accuses Obsidian of maintaining a “systematic pattern of wage and hour violations” under the California Labor Code and the Industrial Welfare Commission’s wage orders. The complaint argues that the alleged issues were not isolated incidents, but a recurring part of the company’s employment practices.

Among the accusations, the developer allegedly increased its profits by violating state laws and failing to pay employees in full, including minimum wages, overtime pay, and outstanding wages after employment ended. The studio is also accused of failing to guarantee mandatory meal and rest periods for its workers.

Workers Are Seeking Financial Compensation From Obsidian Entertainment

The class-action lawsuit includes all non-exempt Obsidian employees in California from October 9, 2021 until the date the case was filed. It also seeks to include former employees who left the company from October 2022 onward. The plaintiffs are seeking unpaid wages, unreimbursed business expenses, benefits, interest, attorneys’ fees, legal costs, and other penalties resulting from the alleged violations.

For its part, Obsidian Entertainment has “denied, generally and specifically, each and every allegation” and requested that the lawsuit be dismissed in its entirety with prejudice. The case comes months after the studio confirmed in February that it would not be developing The Outer Worlds 3, after acknowledging that the sequel released in 2025 did not meet sales projections.

Source: 3DJuegos