WASHINGTON - LinkedIn has agreed to pay nearly $6m in backpay and damages to 359 current and former employees after a US investigation found it had failed to pay them properly for overtime work.
David Weil, Administrator of the Labour Department's Wage and Hour Division has ordered LinkedIn to pay $6m to employees and former employees who were entitled to overtime but didn't get paid. Image: Boston
Under a settlement announced by the Labour Department, the career-focused social network will pay more than $3.3m in overtime back wages and $2.5m in damages to be paid directly to workers in California, Illinois, Nebraska and New York.
"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 David Weil, Administrator of the Labour Department's Wage and Hour Division.
"We are particularly pleased that LinkedIn also has committed to take positive and practical steps toward securing future compliance," he added.
Labour Department investigators found that LinkedIn violated the overtime and record-keeping provisions of the Fair Labour Standards Act by neglecting to record, account and pay for all hours worked in a week.
LinkedIn to make internal changes
Under the law, non-exempt employees must be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and a half their regular hourly rates for any work beyond 40 hours in a week.
LinkedIn has also agreed to provide compliance training and distribute its policy prohibiting off-the-clock work to all non-exempt employees and their managers and remind managers of the affected employees for whom overtime work must be recorded and paid. It will also restate its policy prohibiting retaliation against any employee who raises workplace concerns.
"Off-the-clock hours are all too common for the American worker. This practice harms workers, denies them the wages they have rightfully earned and takes away time with families," said Susana Blanco, Wage and Hour Division District Director in San Francisco.
"We urge all employers, large and small, to review their pay practices to ensure employees know their basic rights and as employers, the firms commit to comply with the regulations at all levels of the organisation," Bianco said.
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