LinkedIn Corp (NYSE:LNKD) agreed to pay almost $6 million to its current and former employees in connection with labor violations.
According to the United States Department of Labor, LinkedIn Corp (NYSE:LNKD) was investigated by the agency’s Wage and Hour Division. The investigation found that world’s largest professional network company violated the overtime and record-keeping provisions of the Fair Labor Standards Act.
The investigators found that LinkedIn Corp (NYSE:LNKD) failed to record, account and pay all of the work-hours of its employees in a work-week.
LinkedIn Corp (NYSE:LNKD) agreed to pay $3,346,195 in overtime back wages and $2,509,646 in liquidated damages to 359 former and current employees working at its offices in California, Illinois, Nebraska and New York. The company also agreed to take proactive steps to prevent the repeat of its violations.
The Department of Labor said LinkedIn Corp (NYSE:LNKD) entered into an enhanced compliance agreement to provide compliance training and distribute the agency’s policy of prohibiting off-the-clock work to all nonexempt employees and their managers.
The company also agreed to meet the managers of its current affected employees to remind them that overtime work must be recorded and paid for, and LindkedIn’s policy prohibits retaliation against any employees who raises concerns about workplace issues.
In a statement, Susana Blanco, district director of the Wages and Hour Division in San Francisco said, “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.”
“We urge all employers, large and small, to review their pay practices to ensure employees know their basic workplace rights and that the commitment to compliance works through all levels of the organization. The department is committed to protecting the rights of workers and leveling the playing field for all law-abiding employers,” added Blanco.
Commenting on the response of LinkedIn Corp (NYSE:LNKD) to resolve its labor violations, Dr. David Weil, the administrator of the Wage and Hour Division said, “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.”
In addition, Dr. Weil said, “We are particularly pleased that LinkedIn also has committed to take positive and practical steps towards securing future compliance.”