Groupon sales reps claim they’re getting a raw deal.
The daily deals giant has been slapped with a lawsuit by a former sales rep who alleges she was stiffed on overtime pay.
Ex-Groupon saleswoman Ranita Dailey is seeking class-action status for her suit, and her lawyer told Crain’s that the overtime issue is “systemic.”
Three-year-old Groupon has been expanding at a furious clip, adding thousands of workers and buying up daily deal Web sites around the world.
As its workforce swells, hitting 7,000 employees, so has criticism of the company’s work environment.
Tech site PaidContent said Groupon employees have taken to griping online, calling the sales floor “a boiler room.”
The Chicago-based company reportedly lowered the commission it awards its reps from 2.5 percent to 1.5 percent even as it increases pressure on the workers to close deals with merchants.
The lawsuit filed in Chicago federal court last month seeks to recoup overtime wages.
The suit is the latest heat on Groupon, which has been under intense scrutiny since it filed to become a public company in June.
The company has put its IPO on hold because of unfavorable market conditions. Groupon has also run afoul of the Securities and Exchange Commission at least twice. In particular, CEO Andrew Mason raised concerns when a leaked memo from him to employees became public.
The cheerleader letter to Groupon’s staff about the company’s success could be seen as violating a “quiet period” ahead of a company’s public debut.