Groupon employees are not pleased.
A large portion of the sales team has filed a lawsuit against the company, charging it failed to pay overtime, Crain's Chicago Business reported.
Whether it’s a valid complaint or not, it’s certainly bad PR for a company facing SEC scrutiny, a delayed IPO and fleeing managers.
Ranita Dailey, who left the company last month, filed suit in U.S. District Court, seeking retroactive overtime pay plus two percent in damages. The suit says Groupon didn’t pay sales employees overtime, violating wage laws, or didn’t pay them enough.
According to Crain’s, "The overtime suit could become a big problem for the company, which employs more than 4,800 sales reps out of a workforce approaching 10,000. Nearly 1,000 of the reps are in Chicago. On average, the reps are paid about $32,500 a year, plus commissions equal to a percentage of the value of the deals they line up with restaurants, salons and other local businesses."
Groupon allegedly hasn’t paid for overtime since its inception in 2008.
Is this just another disgruntled employee issue, or is the party over for Groupon?