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iGoldRush Blog   May 2010

Former GoDaddy Employees File Class Action Lawsuit

May 21, 2010 in News

According to a news tip received by iGoldrush, a legal complaint has been filed against GoDaddy, the largest Domain Name Registrar with $750 million in revenues, by former employees. According to the complaint, GoDaddy may be trying to discount a portion of it’s labor force by non-compliance with federal FLSA wage and hour standards, involving sales bonuses and overtime pay.

The complainants are seeking class action status for the illegal bonus deductions, failure to properly pay overtime, and wrongful termination of a whistleblower.

Former GoDaddy employees, Toby Harris and Casey Corbin, confronted the Registrar giant in February 2010 regarding the compensation plan for Technical Inbound Sales and Support employees, pointing out that it may be illegal.

“They have a bonus sales plan, which is definitely production based and anticipated, which in no way qualifies for a discretionary bonus exemption under the FLSA Overtime laws. So it’s looks like they are using this unrelated QA system to steal bonus commissions and call it discretionary to prevent proper
overtime payments. Casey and I attempted to show this to the company, and the next thing you know we are unemployed. Not only that, it is unfair to other domain registrar’s and hosting companies that comply with labor laws, they don’t operate with illegal discounted labor schemes.” Said Harris.

“In an era of seemingly endless corporate corruption. It is a sad truth that we should have to go to the extremes of an attorney to collect fair pay.” Said Corbin.

GoDaddy excutives deny any wrongdoing.

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