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September can’t end soon enough for Groupon. The month brought a string of staff departures, SEC spats and the indefinite shelving of the company’s long-awaited IPO. Now a second class of employees has filed a class action against Groupon over unpaid overtime.
In a Chicago federal court filing last week, a woman representing so-called “deal vetters” at Groupon claimed the company broke federal and state law by failing to pay overtime to those who worked over 40 hours a week. According to the plaintiffs’ lawyer, Doug Werman, deal vetters were responsible for reviewing the terms of the transactions between Groupon and the merchants with which it partners. The position has since been eliminated.
The deal vetters’ proposed class action echoes a similar one filed in late August by Groupon salespeople. The salespeople in that suit recently amended their complaint to provide additional facts such as a sample work contract that reveals a starting salary of $32,000.
Groupon did not return requests for comment.
Werman said about 50 deal vetters are affected by the new lawsuit, while over 1,000 salespeople are covered by the earlier filing. In court proceedings today, a judge said that the parties could begin discovery, a procedure that will allow both sides to collect evidence to argue whether or not the class action should go forward.