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LinkedIn to pay nearly $6 million over wage law violation

LinkedIn Corp has agreed to nearly $6 million to more than 350 current and former workers in overtime wages and damages. LinkedIn was found to have violated US wage law, after the US Department of Labor launched an investigation. 

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People walk outside of LinkedIn headquarters on in Mountain View, Calif. LinkedIn Corp has agreed to almost $6 million to more than 350 current and former workers in overtime wages and damages.

Marcio Jose Sanchez/AP/File

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LinkedIn Corp has agreed to pay nearly $6 million to more than 350 current and former employees after a US Department of Labor investigation found the online career-networking company violated the country's wage law.

In a settlement announced by the Labor Department on Monday, LinkedIn will pay more than $3.3 million in back overtime wages and more than $2.5 million in damages to workers at company branches in California, Illinois, Nebraska and New York.

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LinkedIn 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, the administrator of the Labor Department's Wage and Hour Division, in a statement.

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A LinkedIn spokeswoman said that talent is the company's No. 1 priority and they were eager to work closely with the Labor Department to reach the settlement.

"This was a function of not having the right tools in place for a small subset of our sales force to track hours properly," said Shannon Stubo, vice president of corporate communications.

The Labor Department said LinkedIn failed to record and compensate workers for all hours worked, violating provisions of the Fair Labor Standards Act (FLSA).

In addition to the settlement payment, LinkedIn will train all employees that "off-the-clock work" is prohibited for all non-exempt workers, the Labor Department said.

The FLSA requires that non-exempt workers, who are not salaried managers, be paid the federal minimum hourly wage of $7.25 plus overtime pay for hours worked past 40 in a given work week.

LinkedIn's shares were trading at $203.55 on Monday, up 0.9 percent on a day when advancing stocks outnumbered declining ones by a ratio of 3 to 2 on the New York Stock Exchange. Last week, the company reported a 47 percent jump in second-quarter revenue, surpassing analysts' expectations.

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The website's membership jumped by a third to 313 million in the quarter that ended June 30. LinkedIn shares were up 0.32 percent to $202.43 Monday afternoon. 


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