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NEW YORK (CNN/Money) -
Video game maker Electronic Arts will announce a change in its longstanding policy and begin paying overtime to some of its 5,800 workers this week, the New York Times reported Wednesday. But those workers will no longer be eligible for options or bonuses.
The policy change marks a marked departure from long-time Silicon Valley compensation practices of expecting employees to work overtime in return for stock options, bonuses and perks such as sumptuous cafeterias and fancy corporate gyms.
In the Times article, workers at Electronic Arts (Research) and other firms in the Valley stated that "such perks put a cozy face on what amounts to a white-collar sweatshop."
The Redwood City, Calif.-based company may have been pushed to change its policy after the wife of one of the company's game programmers wrote an online essay in which she accused the company of driving its workers to the point of exhaustion and collapse. The essay received more than 4,000 responses and many were supportive.
As a result, company officials stated in the article that they are reviewing its entire compensation structure, including who receives stock options, and that it will begin paying overtime to some workers instead of bonuses or stock options. These officials stated that the company offers its employees a wide range of corporate amenities, ranging from the gym to flexible work schedules, basketball courts and even a masseuse. They also said that bonuses range from 5 percent to 30 percent of salary.
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