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Coupon website giant Groupon named defendant in FLSA lawsuit

Posted on Sep 28, 2011

A lawsuit filed in the U.S. District Court for the Northern District of Illinois names the popular website Groupon as the defendant in a claim that the company failed to pay their employees fair overtime wages under guidelines set by the Fair Labor Standards Act, according to the Wall Street Journal.
The suit alleges that the company unfairly compensated employees who were instructed to make cold calls to drum up business for the then-new site, although Groupon claims that they are now adhering to the FLSA standards.

Groupon reported revenue of $1.5 billion in the first half of this year, compared to $131.5 million in the same period last year, according to the article.
It is anticipated that 2,000 current and former employees will join in the suit, if it reaches class action status.

Under the FLSA, call service agents and those in sales are entitled to overtime pay, and should not be exempt from the Act's standards, as long as certain stipulations are met.
To learn more about those stipulations, or for more information on unpaid overtime claims, contact the Houston fair overtime lawyers at Kennedy Hodges for your free book and case evaluation. We can be reached at 888.449.2068, or by filling out our online form.

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