Lawsuit: click here
Wizard's response: click here
Response of Director of Organized Play for WotC: click here
To put it in simply terms, the judges claim that their work meets the legal definition of employees, and Wizards has failed to compensate them appropriate. According to law, we cannot treat judges as volunteers. Volunteers are those “who perform [..] hours of service for a public agency for civic, charitable, or humanitarian reasons, without promise, expectation or receipt of compensation for services rendered.” However, judges receive compensation usually in the form of Magic products, which is rather symbolic in comparizon to such responsible and time consuming task, which surely judging at Pro Tour, Grand Prix level is.
The court will decide who is right, unless the parties settle.
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