As more and more people take to social media to report everything from rat infestations in their local Dollar Tree stores to allegations of firing pregnant employees, one thing is becoming increasingly clear: Dollar General's problems run deep.
The story that's emerged around the discount retailer in the last few years also reveals a company deeply at odds with its employees, who continue to report troubling conditions on a regular basis.
Related: Dollar General Employees Call Out the Retailer In a Very Public Way
Its most recent lawsuit, which was settled Oct. 19, alleges that the company asked potential employees for inappropriate medical history information and screened out disabled candidates from its hiring processes. The suit included claims from 498 people.
The U.S. Equal Employment Opportunity Commission, which filed the suit, said that Dollar General's medical examinations held for those applying for jobs at its Bessemer, Alabama Distribution Center, were "highly invasive" and included a physical examination that, "in some instances (included) a genital examination of job applicants."
The suit also states that Dollar General rescinded job offers to applicants whose blood pressure exceeded 160/100 or who had less than 20/50 vision in one eye, despite these conditions having no impact on applicants' ability to perform the job.
Dollar General fends off one problem
To resolve the allegations, Dollar General agreed to a $1 million settlement and is now required to review and revise its ADA (Americans with Disabilities) and GINA (Generic Information Non-Discrimination Act) policies.
However, the retailer remains a member of OSHA's Severe Violator Enforcement program thanks to more than 111 workplace violations as of March of 2023, per a report from The New York Times. Dollar General has been charged with more than $15.5 million in penalties for these violations.
Despite this, Dollar General continues to plow money into opening more locations — more than 19,000 as of Oct. 2023 — even as employees continue to report that unworkable conditions, such as filthy floors, flea infestations, and more continue to materialize regularly.
Dollar General has a reckoning to face
It's no secret that Dollar General's ship has sailed into dangerous waters. The retailer recently brought back ex-CEO Todd Vasos, who originally retired in Nov. 2022 after eight years with the company in which he increased its annual revenue by more than 80%. The prior CEO, Jeff Owen, was let go after only a year in the role.
Dollar General (DG) -) stock has been in decline since 2022, currently about 53% down for the year. The retailer has lost a whopping $29.5 billion in market value since the end of December, which is likely due to its legal woes as well as increasing news coverage about its store conditions.
Dollar General's $6.94 billion debt does post some risks, according to analysts. But with Vasos back at the helm, charting a course to safer waters is already deep in the works.
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