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LinkedIn pays out almost $6 million in wages, damages in labor issue

updated 06:54 pm EDT, Tue August 5, 2014

Employees to be paid missing wages, steps taken to stop second occurrence

Professional networking site LinkedIn agreed on Monday to pay out nearly $6 million in overtime wages and damages, after a probe by the United States Department of Labor. The job networking service company was found to be in violation of the Fair Labor Standards Act by not properly keeping records in regard to time worked, as well as violating overtime laws.

The Department of Labor's Wage and Hour Division discovered that the company wasn't recording or paying for all of the hours its employees were working during the course of a normal week. When the company was informed of the violations, it agreed to pay all wages owed, while taking steps to prevent a repeat offense.

"This company has shown a great deal of integrity by fully cooperating with investigators and stepping up to the plate without hesitation to help make workers whole," said Wage and Hour Division Administrator Dr. David Weil. "We are particularly pleased that LinkedIn also has committed to take positive and practical steps towards securing future compliance."

A total of 359 current and former employees will be paid $3.3 million in back pay for overtime, as well as an additional $2.5 million in damages. The employees are said to have worked in the company's offices in California, Illinois, Nebraska and New York.

LinkedIn has also entered in an agreement with the Department of Labor that will have the company providing training and distribution of company policy that prohibits working off-the-clock for nonexempt employees and their management staff. The agreement also requires the company to meet with managers of employees that are still employed with LinkedIn, but involved in the dispute. LinkedIn will also issue a reminder to employees about retaliation policies for those that bring up workplace issues.

In a statement to Ars Technica, a LinkedIn spokesperson said that company was already in the process of fixing the labor issues before it was contacted by the Department of Labor. LinkedIn reiterated the talent is the "number one priority" of the company, so it wanted to work with the Department of Labor to fix the situation as quickly as possible to achieve a fair resolution.

"Linked has made every effort possible to ensure each impacted employee has been made whole," said the spokesperson.

By Electronista Staff
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