Class-action lawsuit filed against Groupon by former employees

By Mike Dunn September 9, 2011

It has been a rough couple of months for the daily deal site Groupon, and it’s not getting any better today. A class-action lawsuit has been filed by former Groupon employees against the company. The lead plaintiff in the case is a former salesperson named Ranita Dailey who claims that Groupon failed to properly pay her for overtime work over her three year career with the company.

The lawsuit could potentially include all past and present Groupon sales people and result in millions of dollars owed. The lawsuit does not claim that Groupon completely failed to pay overtime, but it did not pay the correct amount of overtime. One example outlined is a bimonthly paystub provided from Dailey that shows 106 hours worked, but only 19.5 hours of overtime was paid. This does not seem to amount to much money on a personal level, but companywide it can really add up.

It seems as though Groupon has had nothing but bad news since filing for IPO. Business is slowing down, and through the IPO process Groupon has revealed that it is not profitable. With Groupon losing money, and small business owners griping about the service it seems that Groupon might not be a good deal for anyone.

It makes us wonder if Groupon management is starting to regret not accepting the 6 billion dollar offer from Google to purchase the company.

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