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	<title>Comments on: Dreamhost Overbills Customers $7.5 Million; Uses Homer Simpson To Deliver Apology</title>
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	<link>http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/</link>
	<description>Startup and Technology News</description>
	<lastBuildDate>Tue, 10 Nov 2009 10:25:12 -0800</lastBuildDate>
	
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		<title>By: Let’s Beat Up Dreamhost - AAAH!!! (read: William Wallace Battle Scream)</title>
		<link>http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/comment-page-3/#comment-2686302</link>
		<dc:creator>Let’s Beat Up Dreamhost - AAAH!!! (read: William Wallace Battle Scream)</dc:creator>
		<pubDate>Mon, 06 Apr 2009 12:03:44 +0000</pubDate>
		<guid isPermaLink="false">http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/#comment-2686302</guid>
		<description>[...] They got beaten up. [...]</description>
		<content:encoded><![CDATA[<p>[...] They got beaten up. [...]</p>
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		<title>By: Andrew</title>
		<link>http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/comment-page-3/#comment-2625012</link>
		<dc:creator>Andrew</dc:creator>
		<pubDate>Sat, 14 Feb 2009 04:48:17 +0000</pubDate>
		<guid isPermaLink="false">http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/#comment-2625012</guid>
		<description>100% SOLID RELIABLE WEB HOSTING, 1500 GIGS SPACE,$6.95/month

http://burmastreet.com/siteseller/viewtopic.php?f=2&amp;t=1199</description>
		<content:encoded><![CDATA[<p>100% SOLID RELIABLE WEB HOSTING, 1500 GIGS SPACE,$6.95/month</p>
<p><a href="http://burmastreet.com/siteseller/viewtopic.php?f=2&amp;t=1199" rel="nofollow"></a><a href='http://burmastreet.com/siteseller/viewtopic.php?f=2&amp;t=1199'>http://burmastr...?f=2&amp;t=1199</a></p>
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		<title>By: How Much Did Google Error Fiasco Cost To Advertisers? &#171; .·´¯`·-&#62; Amar&#8217;s Blog &#60;-·´¯`·.</title>
		<link>http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/comment-page-3/#comment-2613648</link>
		<dc:creator>How Much Did Google Error Fiasco Cost To Advertisers? &#171; .·´¯`·-&#62; Amar&#8217;s Blog &#60;-·´¯`·.</dc:creator>
		<pubDate>Mon, 02 Feb 2009 08:19:29 +0000</pubDate>
		<guid isPermaLink="false">http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/#comment-2613648</guid>
		<description>[...] is not a first time where a single error costed pain and monetary losses to users-dreamhost finger mismatch costed 7.5 million dollars which was refunded [...]</description>
		<content:encoded><![CDATA[<p>[...] is not a first time where a single error costed pain and monetary losses to users-dreamhost finger mismatch costed 7.5 million dollars which was refunded [...]</p>
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		<title>By: how much did google error fiasco costed to advertisers? &#171; earnstop.com</title>
		<link>http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/comment-page-3/#comment-2612972</link>
		<dc:creator>how much did google error fiasco costed to advertisers? &#171; earnstop.com</dc:creator>
		<pubDate>Sun, 01 Feb 2009 06:59:28 +0000</pubDate>
		<guid isPermaLink="false">http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/#comment-2612972</guid>
		<description>[...] This is not a first time where a single error costed pain and monetary losses to other-dreamhost finger mismatch costed 7.5 million dollars which was refunded back. [...]</description>
		<content:encoded><![CDATA[<p>[...] This is not a first time where a single error costed pain and monetary losses to other-dreamhost finger mismatch costed 7.5 million dollars which was refunded back. [...]</p>
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		<title>By: Is Dreamhost Web Hosting hiding cyber crime? &#171; Seahawks Sports Man</title>
		<link>http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/comment-page-3/#comment-2567360</link>
		<dc:creator>Is Dreamhost Web Hosting hiding cyber crime? &#171; Seahawks Sports Man</dc:creator>
		<pubDate>Mon, 15 Dec 2008 08:28:26 +0000</pubDate>
		<guid isPermaLink="false">http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/#comment-2567360</guid>
		<description>[...] Dreamhost Web Hosting has upset people with its callous attitude before. When they double-billed their customers for millions of dollars, the Dreamhost staff laughed about the mistake on their blog. [...]</description>
		<content:encoded><![CDATA[<p>[...] Dreamhost Web Hosting has upset people with its callous attitude before. When they double-billed their customers for millions of dollars, the Dreamhost staff laughed about the mistake on their blog. [...]</p>
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		<title>By: Do Dreamhost founders Dallas Kashuba, Josh Jones support cybercrime? &#124; SEO Theory - SEO Theory and Analysis Blog</title>
		<link>http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/comment-page-3/#comment-2566455</link>
		<dc:creator>Do Dreamhost founders Dallas Kashuba, Josh Jones support cybercrime? &#124; SEO Theory - SEO Theory and Analysis Blog</dc:creator>
		<pubDate>Sun, 14 Dec 2008 02:22:52 +0000</pubDate>
		<guid isPermaLink="false">http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/#comment-2566455</guid>
		<description>[...] have a colorful history, to say the least. Earlier this year Michael Arrington (TechCrunch) reamed Dreamhost Web Hosting for using Homer Simpson to apologize for overbilling customers by $7.5 [...]</description>
		<content:encoded><![CDATA[<p>[...] have a colorful history, to say the least. Earlier this year Michael Arrington (TechCrunch) reamed Dreamhost Web Hosting for using Homer Simpson to apologize for overbilling customers by $7.5 [...]</p>
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		<title>By: Randy</title>
		<link>http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/comment-page-3/#comment-2554079</link>
		<dc:creator>Randy</dc:creator>
		<pubDate>Wed, 03 Dec 2008 03:48:51 +0000</pubDate>
		<guid isPermaLink="false">http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/#comment-2554079</guid>
		<description>Well apparently they&#039;re still at it - I discovered today that they were billing my credit card for an account I NEVER signed up for. (I&#039;ve been using 1and1 for years}.  I dont know how they got my credit card info.
I filed a complaint with the CA atty Gen office. This fraudulent operation needs to be shut down. Nothing funny abt this at all.</description>
		<content:encoded><![CDATA[<p>Well apparently they&#8217;re still at it &#8211; I discovered today that they were billing my credit card for an account I NEVER signed up for. (I&#8217;ve been using 1and1 for years}.  I dont know how they got my credit card info.<br />
I filed a complaint with the CA atty Gen office. This fraudulent operation needs to be shut down. Nothing funny abt this at all.</p>
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		<title>By: Matt L</title>
		<link>http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/comment-page-3/#comment-2550587</link>
		<dc:creator>Matt L</dc:creator>
		<pubDate>Sun, 30 Nov 2008 06:00:25 +0000</pubDate>
		<guid isPermaLink="false">http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/#comment-2550587</guid>
		<description>While I think it&#039;s annoying when one tries to be too casual in business expressly for the point of being cool, I don&#039;t find that to be unprofessional. 

You&#039;re forgetting that all their affected customers are on shared hosting.  How serious of a business are you going to put on shared hosting? I hope not much, because we get what we pay for, even if it ends up erroneously being what we paid for twice.</description>
		<content:encoded><![CDATA[<p>While I think it&#8217;s annoying when one tries to be too casual in business expressly for the point of being cool, I don&#8217;t find that to be unprofessional. </p>
<p>You&#8217;re forgetting that all their affected customers are on shared hosting.  How serious of a business are you going to put on shared hosting? I hope not much, because we get what we pay for, even if it ends up erroneously being what we paid for twice.</p>
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		<title>By: Why I Love Like AN Hosting &#124; Futurosity</title>
		<link>http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/comment-page-3/#comment-2517268</link>
		<dc:creator>Why I Love Like AN Hosting &#124; Futurosity</dc:creator>
		<pubDate>Wed, 29 Oct 2008 18:44:07 +0000</pubDate>
		<guid isPermaLink="false">http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/#comment-2517268</guid>
		<description>[...] DreamHost screws up (like when they overbill customers $7.5 million), they try to be clever (Um, Whoops.). Media Temple doesn&#8217;t go down very often. Instead, when [...]</description>
		<content:encoded><![CDATA[<p>[...] DreamHost screws up (like when they overbill customers $7.5 million), they try to be clever (Um, Whoops.). Media Temple doesn&#8217;t go down very often. Instead, when [...]</p>
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		<title>By: Cor Cinza / Eu no DreamHost!</title>
		<link>http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/comment-page-3/#comment-2514510</link>
		<dc:creator>Cor Cinza / Eu no DreamHost!</dc:creator>
		<pubDate>Mon, 27 Oct 2008 15:22:32 +0000</pubDate>
		<guid isPermaLink="false">http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/#comment-2514510</guid>
		<description>[...] estou pegando os esquemas no DH mas até agora estou gostando. Só espero que não aconteça nenhum problema de cobrança [acho que eles aprenderam a lição] enquanto eu estiver por [...]</description>
		<content:encoded><![CDATA[<p>[...] estou pegando os esquemas no DH mas até agora estou gostando. Só espero que não aconteça nenhum problema de cobrança [acho que eles aprenderam a lição] enquanto eu estiver por [...]</p>
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		<title>By: Dreamhost Billing Nightmare &#187; JaypeeOnline // Blogging News &#38; Reviews</title>
		<link>http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/comment-page-3/#comment-2464642</link>
		<dc:creator>Dreamhost Billing Nightmare &#187; JaypeeOnline // Blogging News &#38; Reviews</dc:creator>
		<pubDate>Wed, 10 Sep 2008 17:06:53 +0000</pubDate>
		<guid isPermaLink="false">http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/#comment-2464642</guid>
		<description>[...] bad way to apologize given the type of situation involved. If you have time you can also check out TechCrunch&#8217;s post regarding this [...]</description>
		<content:encoded><![CDATA[<p>[...] bad way to apologize given the type of situation involved. If you have time you can also check out TechCrunch&#8217;s post regarding this [...]</p>
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		<title>By: Bigbeaks UMPC and Mobile Technology &#187; Blog Archive &#187; Slow-down should be fixed</title>
		<link>http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/comment-page-3/#comment-2067719</link>
		<dc:creator>Bigbeaks UMPC and Mobile Technology &#187; Blog Archive &#187; Slow-down should be fixed</dc:creator>
		<pubDate>Mon, 31 Mar 2008 20:49:11 +0000</pubDate>
		<guid isPermaLink="false">http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/#comment-2067719</guid>
		<description>[...] went with Dreamhost despite the fact that they had suffered a pretty serious billing problem that got a fair amount of attention back in January.&#160; While researching them, I found that it [...]</description>
		<content:encoded><![CDATA[<p>[...] went with Dreamhost despite the fact that they had suffered a pretty serious billing problem that got a fair amount of attention back in January.&#160; While researching them, I found that it [...]</p>
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		<title>By: Bigbeaks Blog &#187; Blog Archive &#187; Slow-down should be fixed</title>
		<link>http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/comment-page-3/#comment-2067711</link>
		<dc:creator>Bigbeaks Blog &#187; Blog Archive &#187; Slow-down should be fixed</dc:creator>
		<pubDate>Mon, 31 Mar 2008 20:47:46 +0000</pubDate>
		<guid isPermaLink="false">http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/#comment-2067711</guid>
		<description>[...] went with Dreamhost despite the fact that they had suffered a pretty serious billing problem that got a fair amount of attention back in January.&#160; While researching them, I found that it [...]</description>
		<content:encoded><![CDATA[<p>[...] went with Dreamhost despite the fact that they had suffered a pretty serious billing problem that got a fair amount of attention back in January.&#160; While researching them, I found that it [...]</p>
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		<title>By: jcricket</title>
		<link>http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/comment-page-3/#comment-1935362</link>
		<dc:creator>jcricket</dc:creator>
		<pubDate>Wed, 23 Jan 2008 02:50:27 +0000</pubDate>
		<guid isPermaLink="false">http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/#comment-1935362</guid>
		<description>I don&#039;t get the &quot;forgive and forget&quot; attitude either. 

Yes, mistakes happen. And when they do, transparency is better than stonewalling. For example, I&#039;ve managed employees before, and I always prefer the ones that can admit they did wrong (preferably before I find out from someone else).  However, someone who makes a lot of mistakes and easily owns up is not preferable to someone who hardly ever makes a mistake and has a hard time admitting it.

Dreamhost is a value-priced host, so I&#039;m prepared to offer them some slack (can&#039;t expect 99.99% uptime), but the repetition of critical downtime and billing/setup errors caused by insufficiently tested scripts on DHs part is getting inexcusable.

After every incident they have a series of posts like these - usually in this order: 1) Minor issue, nothing to worry about; 2) Big issue, but it&#039;s all fixed; 3) OK, for some people it&#039;s still ongoing; 4) The aftermath, why we were wrong all along, tee-hee!

That&#039;s fine if it&#039;s once every couple of years, but by now it&#039;s clear that DHs technical employeed simply aren&#039;t qualified to run a 500,000+ domain web host. They need to get some serious, outside, senior technical help (along with some management savvy) or there just another poorly tested script away from a complete and total data loss.</description>
		<content:encoded><![CDATA[<p>I don&#8217;t get the &#8220;forgive and forget&#8221; attitude either. </p>
<p>Yes, mistakes happen. And when they do, transparency is better than stonewalling. For example, I&#8217;ve managed employees before, and I always prefer the ones that can admit they did wrong (preferably before I find out from someone else).  However, someone who makes a lot of mistakes and easily owns up is not preferable to someone who hardly ever makes a mistake and has a hard time admitting it.</p>
<p>Dreamhost is a value-priced host, so I&#8217;m prepared to offer them some slack (can&#8217;t expect 99.99% uptime), but the repetition of critical downtime and billing/setup errors caused by insufficiently tested scripts on DHs part is getting inexcusable.</p>
<p>After every incident they have a series of posts like these &#8211; usually in this order: 1) Minor issue, nothing to worry about; 2) Big issue, but it&#8217;s all fixed; 3) OK, for some people it&#8217;s still ongoing; 4) The aftermath, why we were wrong all along, tee-hee!</p>
<p>That&#8217;s fine if it&#8217;s once every couple of years, but by now it&#8217;s clear that DHs technical employeed simply aren&#8217;t qualified to run a 500,000+ domain web host. They need to get some serious, outside, senior technical help (along with some management savvy) or there just another poorly tested script away from a complete and total data loss.</p>
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		<title>By: Anonymous</title>
		<link>http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/comment-page-3/#comment-1935026</link>
		<dc:creator>Anonymous</dc:creator>
		<pubDate>Tue, 22 Jan 2008 20:24:22 +0000</pubDate>
		<guid isPermaLink="false">http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/#comment-1935026</guid>
		<description>Significant profit is and understatement for the amount they make. If you&#039;d like details, please look for the amount of money they claim in taxes and multiply it by 10. Josh is just a poster child for the company, and the real owner is a cocky and arrogant douche who drives a Porsche and is on vacation 9 months out of the year.</description>
		<content:encoded><![CDATA[<p>Significant profit is and understatement for the amount they make. If you&#8217;d like details, please look for the amount of money they claim in taxes and multiply it by 10. Josh is just a poster child for the company, and the real owner is a cocky and arrogant douche who drives a Porsche and is on vacation 9 months out of the year.</p>
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		<title>By: Yani</title>
		<link>http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/comment-page-3/#comment-1933031</link>
		<dc:creator>Yani</dc:creator>
		<pubDate>Mon, 21 Jan 2008 06:06:02 +0000</pubDate>
		<guid isPermaLink="false">http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/#comment-1933031</guid>
		<description>Mistakes I can forgive but being a prick to staff I take a very dim view on.

By question would be, are they making a significant profit and being arseholes or are they backed against the wall and trying to survive?

I&#039;m really very very disappointed to hear this. I always pay people that work for me at least X2 what jo the arsehole does. Minimum rates at there to be exceeded NOT lessened even further.

Seriously I consider that to be X1000 worse than having an issue no matter how well it might be handled. I hope they have woken up since then. American wages and conditions are shit to start with.</description>
		<content:encoded><![CDATA[<p>Mistakes I can forgive but being a prick to staff I take a very dim view on.</p>
<p>By question would be, are they making a significant profit and being arseholes or are they backed against the wall and trying to survive?</p>
<p>I&#8217;m really very very disappointed to hear this. I always pay people that work for me at least X2 what jo the arsehole does. Minimum rates at there to be exceeded NOT lessened even further.</p>
<p>Seriously I consider that to be X1000 worse than having an issue no matter how well it might be handled. I hope they have woken up since then. American wages and conditions are shit to start with.</p>
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		<title>By: Peter</title>
		<link>http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/comment-page-3/#comment-1929353</link>
		<dc:creator>Peter</dc:creator>
		<pubDate>Sat, 19 Jan 2008 19:43:50 +0000</pubDate>
		<guid isPermaLink="false">http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/#comment-1929353</guid>
		<description>I haven&#039;t had a problem with downtimes or overbilling, Dreamhost are usually quick to fix their mistakes. However, if they&#039;ve been violating labor laws I take a very dim view of that, and I hope other loyal DH customers will as well.</description>
		<content:encoded><![CDATA[<p>I haven&#8217;t had a problem with downtimes or overbilling, Dreamhost are usually quick to fix their mistakes. However, if they&#8217;ve been violating labor laws I take a very dim view of that, and I hope other loyal DH customers will as well.</p>
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		<title>By: page cannot be displayed - WebProWorld</title>
		<link>http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/comment-page-3/#comment-1929098</link>
		<dc:creator>page cannot be displayed - WebProWorld</dc:creator>
		<pubDate>Sat, 19 Jan 2008 17:24:39 +0000</pubDate>
		<guid isPermaLink="false">http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/#comment-1929098</guid>
		<description>[...] Its really is the only thing they need to get right. Dont take website down EVER.    Funny... Dreamhost  and the MyDomain.com VPS just didn&#039;t seem to have that concept down. We lost money hand over fist [...]</description>
		<content:encoded><![CDATA[<p>[...] Its really is the only thing they need to get right. Dont take website down EVER.    Funny&#8230; Dreamhost  and the MyDomain.com VPS just didn&#8217;t seem to have that concept down. We lost money hand over fist [...]</p>
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		<title>By: Nicholas Gerasimatos</title>
		<link>http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/comment-page-3/#comment-1928981</link>
		<dc:creator>Nicholas Gerasimatos</dc:creator>
		<pubDate>Sat, 19 Jan 2008 14:49:19 +0000</pubDate>
		<guid isPermaLink="false">http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/#comment-1928981</guid>
		<description>Hello,

As a previous employee of DreamHost and shift manager of their Graveyard Team I can advise you that billing errors within the company are nothing out of the ordinary, suffice to say I was not very shocked when I read there was a 7.5 million dollar billing error. The DreamHost billing system is far from &quot;robust and stable&quot; as Josh Jones proclaimed on the companies web blog, the only thing that could be counted on is the constant issues that have plagued DreamHost for the past few years. Billing issues are quite common with their company and the &quot;fat fingers&quot; he refers to having have led to countless mishaps causing customers downtime and other costly consequences.

As a matter of fact, I am actually the head of a class action lawsuit &quot;Gerasimatos vs New Dream Network&quot; in regards to DreamHost not abiding by the California Department of Labor regulations for paying employees overtime for working greater than 8 hours daily, and also for illegally deducting vested wages for sick and vacation time. I became a whistle blower on DreamHost and shortly after the DLSE contacted the DreamHost owners I was terminated for &quot;doing the right thing&quot;.

Here is the exact letter the DLSE representative sent DreamHost prior to my termination for engaging in protected activities with the DLSE. The law firms participating in the Class Action suit are as follows.

http://www.coviello-law.com/ and http://www.duvel-law.com/

Thank you,

Nicholas Gerasimatos

Dallas Kashuba and Josh Jones: 

I am a retired Senior Deputy Labor Commissioner who was asked to return to assist in answering queries that come to the Division of Labor Standards Enforcement from the public concerning California Labor Law.  One recent query had to do with alleged practices of your business. I do not know if the query originated from an ex-employee, current employee or friend of somebody who knows your business practice(s).  This response is informational in hopes that your business practices do not generate future wage claims and additional liability for your business.

It is alleged that you offer both sick leave and vacation leave as benefits of employment. It is also alleged that in the case where an employee takes sick leave and does not have enough sick leave time accrued, that you deduct double the excess number of hours from that employee’s vacation leave bank. The example give was that if an employee had two hours of sick leave on the books and took a day off &quot;sick&quot; (a total of 8 hours) then you would deduct the two hours from the available sick leave and 12 hours vacation (double the 6 hours necessary to cover the absence). If this is a factual representation of your policies, you are incurring a great deal of liability.

Labor Code § 227.3 protects vacation hours as vested wages. The California Supreme Court in the case of Suastez v. Plastic Dress-Up (1982) [31 Cal.3d 774, 647 P.2d 122, 183 Cal.Rptr. 846] unanimously ruled that under the provisions of Labor Code § 227.3, vacations are earned day by day and any unused vacation must be paid on a pro-rata basis to the employee at the time of termination. The California Supreme Court concluded as follows:

&quot;The right to a paid vacation, when offered in an employer’s policy or contract of employment, constitutes deferred wages for services rendered. Case law from this State and others, as well as principles of equity and justice, compel the conclusion that a proportionate right to a paid vacation vests as the labor is rendered. Once vested, &quot;the right is protected from forfeiture by § 227.3 on termination of employment, therefore, the statute requires that an employee be paid in wages for a pro-rata share of his vacation pay.&quot;

Vacation wages, being vested as earned, cannot be taken from the employee; they must be paid. Therefore (back to the example) taking an additional 6 hours of vacation hours from the employee’s leave bank is a failure to pay for the hours that were vested. This is cumulative and affects every current and prior employee that has had excess vacation hours deducted from their leave bank. A particular quirk of the protection is that there is no violation of the statute until such time as the employment agreement is severed (termination or quit); when payment of final wages becomes due. If the illegally deducted vacation hours are not paid at the final wage rate in accordance to the applicable statue (either Labor Code §§ 201 or 202), the employee has the basis to file a wage claim against you for not only the vacation hours owed, but for penalty wages under Labor Code § 203 (for up to an additional 30 days of wages at their final wage rate).

I have advised the party that queried the Division of unlawfulness of the deduction and suggested that they have the basis of a wage claim if they were an employee of your business and had the hours deducted or would have such a claim if they were a current employee and such wages were not paid when the employment relationship ends.

Please note that business that combine sick leave and vacation leave into some form of &quot;paid time off&quot; or &quot;PTO&quot; such hours would be entitled to the same protection as vacation wages under Labor Code § 227.3. Certainly you do not owe wages to employees for work not performed; you are within your right to deduct (hour for hour) any absence from the wages owed that were not worked (time off without pay). You could deduct (hour for hour) from the vacation hours (so long as the employee is paid for these hours on their regular pay check). I would strongly suggest that such hours are reflected on the wage earning statement as something other than regular wages (either sick leave or vacation hours, as is applicable). The only issue with your policy would be any deduction of vacation hours that were not paid.

You may access the Labor Code from the left side of our web site at www.dir.ca.gov

The foregoing has been provided for informational purposes only and does not constitute legal advice. Information contained here may not be relied upon or used as an official opinion of the Division of Labor Standards Enforcement ( DLSE ) in any forum.  Access to, transmission or receipt of, or reliance upon this information from the DLSE does not create, and is not intended to create, an attorney/client relationship between you or any other person and the DLSE or between you or any other person.

102</description>
		<content:encoded><![CDATA[<p>Hello,</p>
<p>As a previous employee of DreamHost and shift manager of their Graveyard Team I can advise you that billing errors within the company are nothing out of the ordinary, suffice to say I was not very shocked when I read there was a 7.5 million dollar billing error. The DreamHost billing system is far from &#8220;robust and stable&#8221; as Josh Jones proclaimed on the companies web blog, the only thing that could be counted on is the constant issues that have plagued DreamHost for the past few years. Billing issues are quite common with their company and the &#8220;fat fingers&#8221; he refers to having have led to countless mishaps causing customers downtime and other costly consequences.</p>
<p>As a matter of fact, I am actually the head of a class action lawsuit &#8220;Gerasimatos vs New Dream Network&#8221; in regards to DreamHost not abiding by the California Department of Labor regulations for paying employees overtime for working greater than 8 hours daily, and also for illegally deducting vested wages for sick and vacation time. I became a whistle blower on DreamHost and shortly after the DLSE contacted the DreamHost owners I was terminated for &#8220;doing the right thing&#8221;.</p>
<p>Here is the exact letter the DLSE representative sent DreamHost prior to my termination for engaging in protected activities with the DLSE. The law firms participating in the Class Action suit are as follows.</p>
<p><a href="http://www.coviello-law.com/" rel="nofollow"></a><a href='http://www.coviello-law.com/'>http://www.coviello-law.com/</a> and <a href="http://www.duvel-law.com/" rel="nofollow"></a><a href='http://www.duvel-law.com/'>http://www.duvel-law.com/</a></p>
<p>Thank you,</p>
<p>Nicholas Gerasimatos</p>
<p>Dallas Kashuba and Josh Jones: </p>
<p>I am a retired Senior Deputy Labor Commissioner who was asked to return to assist in answering queries that come to the Division of Labor Standards Enforcement from the public concerning California Labor Law.  One recent query had to do with alleged practices of your business. I do not know if the query originated from an ex-employee, current employee or friend of somebody who knows your business practice(s).  This response is informational in hopes that your business practices do not generate future wage claims and additional liability for your business.</p>
<p>It is alleged that you offer both sick leave and vacation leave as benefits of employment. It is also alleged that in the case where an employee takes sick leave and does not have enough sick leave time accrued, that you deduct double the excess number of hours from that employee’s vacation leave bank. The example give was that if an employee had two hours of sick leave on the books and took a day off &#8220;sick&#8221; (a total of 8 hours) then you would deduct the two hours from the available sick leave and 12 hours vacation (double the 6 hours necessary to cover the absence). If this is a factual representation of your policies, you are incurring a great deal of liability.</p>
<p>Labor Code § 227.3 protects vacation hours as vested wages. The California Supreme Court in the case of Suastez v. Plastic Dress-Up (1982) [31 Cal.3d 774, 647 P.2d 122, 183 Cal.Rptr. 846] unanimously ruled that under the provisions of Labor Code § 227.3, vacations are earned day by day and any unused vacation must be paid on a pro-rata basis to the employee at the time of termination. The California Supreme Court concluded as follows:</p>
<p>&#8220;The right to a paid vacation, when offered in an employer’s policy or contract of employment, constitutes deferred wages for services rendered. Case law from this State and others, as well as principles of equity and justice, compel the conclusion that a proportionate right to a paid vacation vests as the labor is rendered. Once vested, &#8220;the right is protected from forfeiture by § 227.3 on termination of employment, therefore, the statute requires that an employee be paid in wages for a pro-rata share of his vacation pay.&#8221;</p>
<p>Vacation wages, being vested as earned, cannot be taken from the employee; they must be paid. Therefore (back to the example) taking an additional 6 hours of vacation hours from the employee’s leave bank is a failure to pay for the hours that were vested. This is cumulative and affects every current and prior employee that has had excess vacation hours deducted from their leave bank. A particular quirk of the protection is that there is no violation of the statute until such time as the employment agreement is severed (termination or quit); when payment of final wages becomes due. If the illegally deducted vacation hours are not paid at the final wage rate in accordance to the applicable statue (either Labor Code §§ 201 or 202), the employee has the basis to file a wage claim against you for not only the vacation hours owed, but for penalty wages under Labor Code § 203 (for up to an additional 30 days of wages at their final wage rate).</p>
<p>I have advised the party that queried the Division of unlawfulness of the deduction and suggested that they have the basis of a wage claim if they were an employee of your business and had the hours deducted or would have such a claim if they were a current employee and such wages were not paid when the employment relationship ends.</p>
<p>Please note that business that combine sick leave and vacation leave into some form of &#8220;paid time off&#8221; or &#8220;PTO&#8221; such hours would be entitled to the same protection as vacation wages under Labor Code § 227.3. Certainly you do not owe wages to employees for work not performed; you are within your right to deduct (hour for hour) any absence from the wages owed that were not worked (time off without pay). You could deduct (hour for hour) from the vacation hours (so long as the employee is paid for these hours on their regular pay check). I would strongly suggest that such hours are reflected on the wage earning statement as something other than regular wages (either sick leave or vacation hours, as is applicable). The only issue with your policy would be any deduction of vacation hours that were not paid.</p>
<p>You may access the Labor Code from the left side of our web site at <a href="http://www.dir.ca.gov" rel="nofollow"></a><a href='http://www.dir.ca.gov'>http://www.dir.ca.gov</a></p>
<p>The foregoing has been provided for informational purposes only and does not constitute legal advice. Information contained here may not be relied upon or used as an official opinion of the Division of Labor Standards Enforcement ( DLSE ) in any forum.  Access to, transmission or receipt of, or reliance upon this information from the DLSE does not create, and is not intended to create, an attorney/client relationship between you or any other person and the DLSE or between you or any other person.</p>
<p>102</p>
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		<title>By: Yani</title>
		<link>http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/comment-page-3/#comment-1928922</link>
		<dc:creator>Yani</dc:creator>
		<pubDate>Sat, 19 Jan 2008 13:16:47 +0000</pubDate>
		<guid isPermaLink="false">http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/#comment-1928922</guid>
		<description>I was one of the first to notice this when it arrived in my inbox. And replied in 2 minutes in a panic thinking I&#039;d done something wrong.

I won&#039;t be changing hosts! I won&#039;t stop recommending them. I&#039;ve got zero complaints about there service, for the price they are hard to beat. I like their humor.

I think those that want to make a fuss about this or go all funny about the way they responded should leave. It&#039;s not the host for you. I can recommend Comcast for all the whingers! That will teach ya. Rack off from Dreamhost and leave our guys alone. 

Best thing in the world that could happen is for the bitchers to leave and for those who can&#039;t manage to request support on email and need to use the phone to go with them. Good riddance! Your type is a pain to deal with and I doubt you will be missed NOT much. You can&#039;t know too much about what you&#039;re doing if you need to ring the host and we are the ones paying for your stupidity. Fantastic!

A Dreamhost who is friendly with nice friendly customers who don&#039;t need to phone up and create unnecessary expense for the rest of us. 

They should break the billing system once a year and get rid of the complainers in a bulk lot.</description>
		<content:encoded><![CDATA[<p>I was one of the first to notice this when it arrived in my inbox. And replied in 2 minutes in a panic thinking I&#8217;d done something wrong.</p>
<p>I won&#8217;t be changing hosts! I won&#8217;t stop recommending them. I&#8217;ve got zero complaints about there service, for the price they are hard to beat. I like their humor.</p>
<p>I think those that want to make a fuss about this or go all funny about the way they responded should leave. It&#8217;s not the host for you. I can recommend Comcast for all the whingers! That will teach ya. Rack off from Dreamhost and leave our guys alone. </p>
<p>Best thing in the world that could happen is for the bitchers to leave and for those who can&#8217;t manage to request support on email and need to use the phone to go with them. Good riddance! Your type is a pain to deal with and I doubt you will be missed NOT much. You can&#8217;t know too much about what you&#8217;re doing if you need to ring the host and we are the ones paying for your stupidity. Fantastic!</p>
<p>A Dreamhost who is friendly with nice friendly customers who don&#8217;t need to phone up and create unnecessary expense for the rest of us. </p>
<p>They should break the billing system once a year and get rid of the complainers in a bulk lot.</p>
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		<title>By: Jules</title>
		<link>http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/comment-page-3/#comment-1928603</link>
		<dc:creator>Jules</dc:creator>
		<pubDate>Sat, 19 Jan 2008 06:49:49 +0000</pubDate>
		<guid isPermaLink="false">http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/#comment-1928603</guid>
		<description>This is my take on the Dreamhost 7.5 Million Dollar Whoops!

http://www.juliesjournal.com/2008/01/18/the-dreamhost-75-million-dollar-whoops/</description>
		<content:encoded><![CDATA[<p>This is my take on the Dreamhost 7.5 Million Dollar Whoops!</p>
<p><a href="http://www.juliesjournal.com/2008/01/18/the-dreamhost-75-million-dollar-whoops/" rel="nofollow"></a><a href='http://www.juliesjournal.com/2008/01/18/the-dreamhost-75-million-dollar-whoops/'>http://www.juli...-dollar-whoops/</a></p>
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		<title>By: darcan</title>
		<link>http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/comment-page-3/#comment-1928107</link>
		<dc:creator>darcan</dc:creator>
		<pubDate>Fri, 18 Jan 2008 21:23:09 +0000</pubDate>
		<guid isPermaLink="false">http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/#comment-1928107</guid>
		<description>Im a loyal customer, and will stay one. As mentioned, you run the risk with autobilling, and you agreed to their TOS, which you should read if youre disgruntled, and these things happen. Fix it and keep going. You probably saved more money using Dreamhost instead of overpaying another hosting provider, than you could possibly lost over this situation. Not to mention the money Dreamhost helps generate for thousands. As a loyal customer i say dust yourself off and keep with their great hosting service.</description>
		<content:encoded><![CDATA[<p>Im a loyal customer, and will stay one. As mentioned, you run the risk with autobilling, and you agreed to their TOS, which you should read if youre disgruntled, and these things happen. Fix it and keep going. You probably saved more money using Dreamhost instead of overpaying another hosting provider, than you could possibly lost over this situation. Not to mention the money Dreamhost helps generate for thousands. As a loyal customer i say dust yourself off and keep with their great hosting service.</p>
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		<title>By: whatever</title>
		<link>http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/comment-page-3/#comment-1926994</link>
		<dc:creator>whatever</dc:creator>
		<pubDate>Thu, 17 Jan 2008 23:12:46 +0000</pubDate>
		<guid isPermaLink="false">http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/#comment-1926994</guid>
		<description>Nuff said.....idiot</description>
		<content:encoded><![CDATA[<p>Nuff said&#8230;..idiot</p>
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		<title>By: whatever</title>
		<link>http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/comment-page-3/#comment-1926992</link>
		<dc:creator>whatever</dc:creator>
		<pubDate>Thu, 17 Jan 2008 23:10:46 +0000</pubDate>
		<guid isPermaLink="false">http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/#comment-1926992</guid>
		<description>hey Aaron......no one is posting false information except you!!!

because you are obviously attempting “damage control”.

prey tell me how false the information these 86,000 plus people posted is.
http://www.google.com/search?sourceid=navclient&amp;ie=UTF-8&amp;rls=GGLG,GGLG:2005-22,GGLG:en&amp;q=dreamhost+sucks</description>
		<content:encoded><![CDATA[<p>hey Aaron&#8230;&#8230;no one is posting false information except you!!!</p>
<p>because you are obviously attempting “damage control”.</p>
<p>prey tell me how false the information these 86,000 plus people posted is.<br />
<a href="http://www.google.com/search?sourceid=navclient&amp;ie=UTF-8&amp;rls=GGLG,GGLG:2005-22,GGLG:en&amp;q=dreamhost+sucks" rel="nofollow"></a><a href='http://www.google.com/search?sourceid=navclient&amp;ie=UTF-8&amp;rls=GGLG,GGLG:2005-22,GGLG:en&amp;q=dreamhost+sucks'>http://www.goog...dreamhost+sucks</a></p>
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		<title>By: Aaron</title>
		<link>http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/comment-page-3/#comment-1926829</link>
		<dc:creator>Aaron</dc:creator>
		<pubDate>Thu, 17 Jan 2008 20:37:31 +0000</pubDate>
		<guid isPermaLink="false">http://www.techcrunch.com/2008/01/15/dreamhost-overbills-customers-75-million-uses-homer-simpson-to-deliver-apology/#comment-1926829</guid>
		<description>And most people here seem to be rival hosting companies.

What sort of jerks are you? Go find a way to get better instead of this. Every Dreamhost customer has tried your service and we now have found bliss. Your false information won&#039;t work.</description>
		<content:encoded><![CDATA[<p>And most people here seem to be rival hosting companies.</p>
<p>What sort of jerks are you? Go find a way to get better instead of this. Every Dreamhost customer has tried your service and we now have found bliss. Your false information won&#8217;t work.</p>
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