Craigslist is now the subject of a massive, $10 billion lawsuit that alleges the company discriminated against its housekeeping employees and forced them to work at the lowest rates possible.
In the lawsuit, filed in California state court, Craigslist alleges the site failed to provide reasonable compensation to its housekeepers because it had “excessive” labor costs.
According to the lawsuit filed Tuesday, the site “lost millions of dollars in revenue” because its housekeeper workforce “did not receive enough money in overtime to compensate them.”
The lawsuit alleges Craigslist “failed to make sufficient wage and salary increases” for the employees and instead made the employees “work longer hours than the normal rate of compensation.”
The plaintiffs say Craigslist also “failed” to provide adequate training for its house cleaners.
Craigslist is the subject to a slew of other lawsuits in recent years, including one alleging it discriminated against Latino and Native Americans by keeping them from becoming housekeepers.
The site recently won a settlement with the Justice Department, which said it would “take appropriate action” to address discriminatory housing practices in its homes.
The case was filed Tuesday on behalf of four former housekeepers and three employees who claim they were subjected to sexual harassment, forced to perform dangerous housework, and pressured to take drugs and alcohol.
“The alleged conduct at the company was not confined to Craigslist, but continued in all other Craigslist businesses, including those owned by eBay,” the lawsuit says.
The suit says it’s not clear why Craigslist is seeking a massive $10bn settlement, but it may be related to the company’s efforts to acquire online retailer Groupon, which was founded by eBay co-founder Pierre Omidyar.
The company is also suing its former employees over allegations they were retaliated against after filing a federal civil rights complaint.
The lawsuit does not name any of the former employees or their former employers.