Tag Archive for employment

Women in Games: Harassment in the Workplace

    I attended the MLG Pro Gaming Circuit in San Diego this past July to cheer on my friend Dan Street as he and his teammates played their way to victory in one of the first WoW tournaments in that circuit. Of the competing teams, I believe that only MoB had a female team member. When I logged onto WoWRiot later that evening I couldn’t help but notice that most of the discussion were posts concerning this one girl and her alleged exploits. The remarks the competitive gaming community directed toward her were embarrassing, insulting, and potentially harmful to her reputation. Even though she performed spectacularly, the vocal minority of the internet saw fit to vilify her not based on her ability as a professional gamer, but as a female.

    Recently I witnessed another discussion relating to female pro gamers, which triggered this particular post. Women are beginning to help shape the future of the games industry. What was once a niche market for adolescent boys has blossomed magnificently into the mainstream. As a result, people of all genders, ages, and races are participating in the development and enjoyment of gaming; yet many of the professionals in this industry are still predominantly young and male. As women are more readily welcomed to development teams, sexual harassment in the workplace will become an issue. As more female pro gamers enter the spotlight, defamation of character and invasion of privacy will present problems that are sadly nothing new to the entertainment industry at large.

    I’m not going to go total “grrlpower” here, but I do think it’s something that isn’t readily discussed in the games industry. This may be an indication that it isn’t much of a problem, but in my experience “failure to discuss” does not equate to “not a problem.” I am therefore going to take a fairly general, practical approach to this discussion that will hopefully benefit entrepreneurs and indie developers that are in a position to supervise their employees. However, I sincerely hope that this post will mostly inform women of their rights in the workplace and in the real world. Due to the breadth of the topic I’ll probably break it down into several separate entries and create a new category.

    Sexual Harassment in the Workplace—What is it?

    How sexual harassment law is legislated depends on the jurisdiction. In the U.S., sexual harassment and discrimination are considered violations of Title VII of the Civil Rights Act of 1964. Incidentally, this was apparently an unintended result of the legislation; opponents of the Civil Rights Act included “sex” in an attempt to get the legislation kicked out. By a happy mistake, they failed and the legislation was passed with gender becoming one of the protected classes. By contrast, in Japan sexual harassment is a tort that violates a woman’s “personal right”. As I am only intimately familiar with U.S. law on this issue, I’m limiting this discussion to U.S. law and policy. However, I do encourage input and discussion concerning the laws of other countries. Feel free to contact me or post comments, both are always welcome.

    According to the U.S. Equal Employment Opportunity Commission, sexual harassment is “unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature” which “explicitly or implicitly affects an individual’s employment, unreasonably interferes with an individual’s work performance, or creates an intimidating, hostile, or offensive work environment.” The employee doesn’t need to show psychological or physical harm to prove that the workplace has become offensive. Innuendo, inappropriate or lewd jokes, and flirting have all been cited as creating offensive work environments when the conduct is pervasive and continuous enough to create a hostile work place. According to the Supreme Court’s interpretation of the EEOC’s regulations, the conduct need not amount to economic “quid pro quo”, where the employee typically loses their position or suffers some other financial harm as retaliation for rebuking or reporting the harassment. See
Meritor Sav. Bank, FSB v. Vinson, 477 U.S. 57 (1986). It’s enough that the employee feels sufficiently uncomfortable or intimidated so as to interfere with her ability or desire to work. Bear in mind that the EEOC regulations typically only apply to employers with more than 15 employees. However, most states have their own guidelines and laws for work discrimination and harassment (i.e., CA law AB1825 requires employers with 50+ employees to provide supervisor training regarding sexual harassment and discrimination), so it is important to know your state’s policies and causes of action for sexual harassment.

    Employer’s Duty to Prevent Sexual Harassment

    First, it should be noted that any sexual harassment in the workplace that results in “tangible employment action” (that is, any change in the harassed employee’s employment status) will always create employer liability. Apart from firing and demotion, this may also include a failure to promote.

    In the event that there is no tangible employment action, the standard for determining employer liability is deceptively simple. To avoid liability, 1) the employer must exercise “reasonable care” to prevent and promptly correct any harassment, and 2) the employee must fail to take advantage of preventative measures and corrective opportunities provided by the employer to mitigate further harm.

    This means that even if the employer takes reasonable steps to prevent or correct harassment, the employer is not absolved of liability if harassment becomes actionable and the employee has taken the appropriate steps to prevent further harassment. Let’s look at an example:

    Example: C Corp. hires Alice as a programmer. During her first week at work, her supervisor, Tom, asks to see her to see him in his office. When she arrives, he closes and locks the door, then propositions her, touches her, and informs her that if she doesn’t agree he’ll make sure she never works again. Alice leaves the office and immediately goes to the HR department, which handles employee harassment complaints. She promptly files a report, and after an investigation C Corp takes reasonable steps to prevent that kind of situation from happening again (i.e., firing Tom and implementing an “open door” policy for meetings of less than 4 people). C Corp would still be liable for Alice’s harassment because only one prong of the test was met—Alice did not fail to take advantage of preventative measures, so C Corp. is vicariously liable.

     Keep in mind—harassment is the only form of discrimination where the employer can avoid liability at all, so this isn’t as unfair as it seems relatively speaking.

    Reasonable Care

    Reasonable care may include: providing and distributing anti-sexual harassment and sexual harassment policy material to your employees and supervisors; and a comprehensive company policy that sets out specific preventative guidelines, including a clear statement of prohibited conduct; an effective complaint procedure that a) maintains the complainant’s privacy, b) provides assurance that no retaliation will be taken for reporting, and c) provides an efficient investigative policy to ensure prompt resolution of complaints. For a more thorough review of the EEOC’s standards for reasonable employer conduct in sexual harassment cases, check out the EEOC website.

    Employee Action

    The employee is required to take steps to avoid further injury. This means promptly reporting any incident that makes you feel personally uncomfortable or intimidated, and particularly if someone you work with is treating you in a manner you don’t consider professionally appropriate. Also keep in mind that harassment need not take place at the workplace. Company events, conventions, business trips and other activities where you interact with your co-workers are not suddenly outside the scope of sexual harassment. If you’re harassed in those situations, report it promptly. That kind of behavior is never okay.

    As a personal side note to all women in the work force: if you want to be treated professionally, behave like a professional. Know the difference between personal and professional relationships and act accordingly. Remember that in the work place, ALL relationships are professional. Dress appropriately, respect personal space, and remember that you don’t have to be a flirt to be considered friendly and personable. Be assertive and confident at all times—if someone is making you uncomfortable, tell them flat out. Failing to do these things won’t excuse sexual harassment—in rare instances, it won’t even prevent it. But it will hopefully make you less of a target.

Employment in the Games Industry

It occurred to me that many people who may read this blog aren't interested in starting their own business. Most fresh developers are more interested in getting involved with an independent studio, or just getting a steady paycheck.

So here we're going to discuss employment. Most entertainment industries have unions. Sports, film, television, and even to some extent the music industry have unions and guilds that represent the interests of talent and professionals within those industries. Those unions will typically enter into collective bargaining agreements with trade and/or industry associations (such as the RIAA) to draft standards that are thereafter embedded into every employment contract where union labor is used.

The games industry has no such union or guild. As a result, what goes into an employment contract is dictated entirely by the employer and the prospective employee. It is therefore very important that you actually get an employment contract laying out the terms of your employment in writing. As an employee getting his or her first gaming gig you should be aware of what an employer is required to do on your behalf. You also want to make sure that your quality of life doesn't go down the tubes because your agreed-upon compensation didn't take into account things like overtime, health insurance, and revenue sharing in the event of a major success.

Do not fall under the delusion that working for a game developer means that you should be working 60 hour shifts plus weekends. The terms of your employment are determined mostly by you, and you should never sacrifice your health and mental well-being for what is ultimately just a job.

What Your Employer Should Provide

  • Form E-4: If you are located in the US, your employer is required to withhold a percentage of your income for tax purposes. This is called the payroll tax, and if you're working as an independent contractor, you should be aware that you're responsible for both the amount normally withheld by the employer and the taxes you yourself pay (essentially double what you pay as an employee). This goes for both state and federal taxes.

  • Employee Manual/Handbook: Under Federal and most State law, employers should provide you with a handbook or other documentation that sets forth the business's policies, practices, and procedures. It should also set forth employee rights and it may also include dispute procedures. While some of this will also be covered in your employment contract, the bulk of the important information concerning your rights will likely be provided to you in the form of additional documentation. This includes workers' compensation information, workplace health & safety, employee health insurance policies, sexual harassment and other discrimination policies, retirement benefits, family leave policies, and employee stock options if available.

  • The Employment Contract

What Your Employment Contract Will Include

  • Recitals/Introduction: this sets out the name of the company and the employee (you), the place of business, etc. It sounds silly, but make sure you're actually being employed by who you think you're being employed by—in the games industry there are a number of parents and subsidiaries, so it's always best to know who will actually be responsible for signing your paycheck.

  • Duties: This usually explains why you are being hired and the tasks that you will be required to perform. It may also include the title of your position. This section may also include a minimum number of hours you are required to work.
  • Term: The length of your employment. Some states place limitations on the length of an employment contract (California being one), so most employment contracts will have provisions for renewal.
  • Nondisclosure: NDA's may be a separate document or an embedded provision—a NDA sets out specifically what must remain confidential, although many contracts keep the definition of "confidential information" and "trade secrets" fairly broad. This is a bit dangerous for the employer because unless employees are aware of what must remain confidential, it may difficult to raise the argument that a specific piece of information should have remained confidential pursuant to the agreement.
  • Work-for-Hire: While employee product created in connection with the employment is automatically a work-for-hire under Copyright law, some employers may seek to broaden the scope by including language that encompasses any work product created during the term of your employment. In this manner an employer may seek to claim ownership over any invention you created independently. It is therefore very important that you read this provision carefully if it's in your contract and address any issues you have before signing your contract. This is especially true if you're an independent contractor.
  • Compensation: This should set out your salary, or it should make reference to a schedule that sets forth your salary. Be aware of who is responsible for paying what and what deductions will be made from your salary for tax and employee benefits purposes.
  • Contingent Compensation: in some instances, particularly if you're working for an indie and you're getting paid peanuts on the condition that you'll get a bigger piece of the pie later, you may have a contingent compensation clause. This will set out the royalty you are entitled to once your company starts earning profit from the product.
  • Credits: If this isn't in your contract, it should be. You are entitled to credit for your contribution to a project. This should set forth how your credit will be displayed and where.
  • Covenants: Many agreements include covenants not to compete. While most jurisdictions legally (judicially) limit the scope of these clauses by time and geography, the covenant still may be burdensome. A covenant not to compete will usually state that, upon termination of your relationship with your employer, you are not allowed to seek employment from a "competitor" for a specific period of time (anywhere from six months to a year, usually). This obviously creates a problem if you're only taking an entry level position and plan on moving to another potentially competing firm. A reasonable employer probably won't enforce this unless you had access to highly confidential information, and there's evidence that you disclosed trade secrets to a competitor. Then again, it's a dangerous business to expect employers to be reasonable.
  • Stock Option/Revenue Sharing/Pension Plan: Larger firms may offer you an opt-in to the company's stock option/revenue sharing/benefit/401(k) plan. Make sure you understand the terms of those benefit plans and what you're entitled to, as well as when you will be entitled to opt-in and subsequently collect from those benefits. It is also important to note how much of your salary will be paid directly into that plan when negotiating your salary.
  • Termination: Employment is typically at-will. This means that both parties can terminate the employment at any point in time on the condition that the terminating party provides notice to the other party (usually 30 days). The Agreement may also include automatic termination in the event that you materially breach the Agreement or breach one of the major bylaws and/or company policies and practices.
  • Disability: If this isn't in your agreement, it should be. If you are unable to perform your duties under the contract as a result of a serious mental or physical disability, you want to make sure that your inability to perform does not constitute a material (actionable/sueable) breach of the contract and that the disability creates a no-fault termination. Yes, there are some companies out there who really can be horrific enough to sue a paraplegic because he can no longer do his job. This is also a good time to contemplate disability benefits.
  • Dispute Resolution (arbitration): Most employment contracts include dispute resolution, mediation and/or arbitration provisions as a preliminary measure to a lawsuit. This is to the benefit of both parties because it's less expensive than going to trial. It is also less formal. You will also want to pay attention to who is responsible for attorneys' fees—depending on the language of the provision, it may be better for each party to bear the cost of their own attorneys' fees.

Conclusion

Before accepting employment, get an idea of what it's like to work there—talk to current employees, talk to your interviewer, and try to get a tour of the workspace so you can get an idea of whether this is where you want to be. It is well documented that quality of life for game developers can at times be extremely poor. Crunch time, poor planning, and seemingly impossible-to-meet milestones can all lead to a work experience that has a detrimental effect on your personal life and psychological well being. Because there is no organization acting on your behalf to prevent these quality of life issues from arising, it is important that you take the steps to ensure that the profession you've chosen and company you work for is a good fit for your lifestyle.

Hiring for your Development Company

In the beginning, most independent developers don’t think about hiring employees. Much of the work is done on an independent contractor basis, and the projects are small enough to not require additional labor. However, once you earn a reputation and you begin pulling down more projects, you may find that hiring additional employees is necessary to manage your workload.

Employment and labor law differs from state to state, country to country. Workers’ Compensation, employee discrimination, and sexual harassment are all very serious issues that employers have to consider when setting up their business. There are also other logistics, such as managing payroll and tax withholdings that may require additional software or accounting to ensure state and federal tax compliance. If you are considering hiring employees, it’s always smart to consult an attorney that is versed in employment and labor law. Failing to do so could lead to failure to comply with certain jurisdictional guidelines. Furthermore, lawsuits by disgruntled former-employees can create serious problems for developers and can often be avoided if certain quality of life and human resource issues are addressed prior to the hiring process.

The following checklist has been adapted to address issues peculiar to developers.

1) Get your tax information squared away.

This means a) filing an SS-4 for your EIN for federal taxes, b) registering with your state’s labor department to pay unemployment taxes, and c) set up a payroll system for state and federal withholdings. Turbotax is a great program for setting up payroll tax withholdings and is the one currently recommended by accountants. To determine what forms you will need to file come tax season, visit the IRS website (federal) and the FTA (state) for more information.

2) Get insured

Employers are required to carry workers’ compensation insurance to cover on-the-job injuries. You have to comply with your state’s guidelines when you file for insurance, and you can typically do so in one of three ways—self-insurance, state-administered insurance plans, and private insurance. To get insured, first figure out what your state requires and/or permits. Next, do your homework and determine which option is best for your purposes.

3) Develop Safety and Quality of Life Guidelines

Companies are required to comply with OSHA (Occupational Safety and Health Act), which sets out the baseline requirements to ensure the safety and health of your employees. Health and Safety becomes an issue for developers when you’re dealing with a lot of computers in a small space. There is the possibility of fire, electrical outages, electrical shock, improper grounding, spills, and various other risks and hazards that must be addressed. You must also comply with any applicable municipal building codes. Make sure your electrical wiring is up to date and provide employers with guidelines for how to properly handle certain situations. Make sure your fire alarms are all fully functional, and have appropriately spaced and well-marked emergency exits in your place of work. You may also be required to admit the fire marshal to ensure building code compliance, so be sure to notify your employees on the day she or he will be in the building.

4) Comply with Department of Labor posting requirements

Visit the DoL website to determine what information and notices you need to provide to your employees. You are required to inform them of their rights under federal (and some state) law. Make sure to comply with the posting requirements as well.

5) Create Personnel Files

Every employee should have their own file that contains their application, their signed NDA, their resume, other work related documents, their I-9 and their W-4. The file may also include employee evaluations, complaints, and other information relevant to their employment. Any medical information MUST be kept separate from the main file and locked away due to HIPPA and state health care privacy laws. Disclosure of any health care related information could lead to both civil and criminal sanctions depending on your state’s laws.

6) The employee handbook

Your employee handbook should describe office procedures, complaint reporting requirements, sexual harassment policies, anti-discrimination efforts, disciplinary measures, and confidentiality requirements. It should describe how you want your employees to behave. It should also describe your goals as a company and your standard business practices. It is important to enforce your disciplinary procedures, particularly in the areas of confidentiality/non-disclosure to maintain protection of trade secrets. You may also want to describe any employee benefits that employees can apply for if you’ve taken steps to provide a 401(k) or health insurance policies to your employees.

7) Annual reporting

You need to fill out a form 940 or a form 940-EZ every year for your federal unemployment tax. A form 940 is required if you are required to pay unemployment taxes in more than one state or if you failed to pay all of your unemployment taxes by January 31 of that year. Otherwise you may fill out the 940-EZ. You are also required to pay those taxes you withheld in you employees’ paychecks. These withholdings account for federal income taxes, medicare taxes, social security taxes and FICA. You can find all of the appropriate federal filing information at the IRS website. In particular you will need to fill out forms 941, 943, 944, and an annual W-2. A copy of the W-2 must also be provided to employees. Note that these are just for your federal tax filings. You must also comply with state tax filings.

Caveat: A lot of developers hire programmers and designers from other countries. If those employees are relocating to the United States, they MUST obtain the proper work visas and fill out an I-9 form. For more information on I-9, visit the USCIS website.

With each new employee that you hire, you must do three things:

1) Notify your state’s employee reporting agency;

2) Every new employee must fill out an I-9 to show that they are allowed to work in the U.S. This is required for both US and non-US citizens.

3) Have the employee fill out a W-4 and withholding allowance certificate.