The dispute centered around overtime pay. Disgruntled employees claimed that the El Segundo, California-based company wrongly classified their jobs in order to benefit from rules which exempt employers from having to pay overtime on software development positions.
Up to 30,000 current and former employees may be entitled to make claims from the settlement fund. Though the company has accounted for part of the settlement already through the establishment of an accrual, it will still have to take a one-time charge in the quarter ended April 1, 2005 of $14m, or 5 cents a share, which had not been factored into previously given earnings guidance.
