Last month LinkedIn agreed to pay approximately $6 million in overtime to 359 current employees. The settlement is based on investigation by the U.S. Department of Labor finding that the company violated federal wage laws.
LinkedIn reached a settlement agreement with the Labor Department to pay $3.3 million in retroactive overtime wages and an additional $2.5 million in damages to workers in California, New York, Illinois, and Nebraska. A representative from the government agency reported that LinkedIn has already mailed payments to employees involved in the settlement.
To its credit, LinkedIn acted very professionally, like a good corporate citizen should. The Labor Department reported the company acted responsibly and cooperated fully by working quickly to resolve the dispute and pay back wages owed.
A representative from LinkedIn stated that the wage and hour violations were due to a systemic failure that did not allow their sales team to properly track their hours. The Labor Department’s investigation revealed that the company failed to record and compensate employees for all hours worked. This is not an uncommon violation of the Fair Labor Standards Act (FLSA). In addition to paying the $6 million settlement for unpaid wages, the company is also responsible for training employees and providing education to ensure that all work performed is “on-the-clock”.