The investigation, conducted by the US Department of Labor's Wage and Hour Division, found out that LinkedIn violated the Fair Labor Standards Act's provisions on overtime and record-keeping. After being notified, LinkedIn promptly agreed to pay the missing wages and find measures to ensure that it will never happen again.
LinkedIn has paid over $3.3 million and over $2.5 million in overtime back wages and damages respectively to 359 employees, both former and current. These employees worked in their offices at New York, Nebraska, Illinois and California.
"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," says Administrator David Weil of the Wage and Hour Division.
The division commended LinkedIn's commitment in taking steps that would ensure the company's future compliance.
The Wage and Hour division of the US Department of Labor found that the online professional networking site failed to make a timely record and compensate an employee's total worked hours in a week. According to the FLSA, employees should receive a federal minimum wage per hour of $7.25 for all the hours of work. In addition to that, employees that have worked more than 40 hours a week should be given time and one-half their regular rate per hour.
The FLSA also requires companies to keep their time and payroll data accurate at all times. It doesn't allow any act of retaliation against employee actions based on lawful exercise of their rights. Any violation committed against the Act will seek employers to pay back wages and liquidated damages to employees.
"Off the clock hours are all too common for the American worker," says District director Susana Blanco from the San Francisco division.
Apart from taking away their time with families, working beyond regular hours denies workers of the wages that they rightfully deserve.
LinkedIn expressed that addressing the situation is their priority and that workers should be paid for all their worked hours.
"Talent is LinkedIn's number one priority, so of course, we were eager to work closely with the Dept. of Labor to quickly and equitably rectify this situation," A LinkedIn spokesperson says.
For the past year, LinkedIn has been working hard to improve their products particularly their own mobile apps. In April, the company announced an increased number in its user base which has a worldwide record of having more than 300 million people.
