Business social network site LinkedIn will pay almost $6 million in owed overtime and damages following a federal investigation regarding violations of the national wage law.
The U.S. Department of Labor says the online company has settled a claim regarding overtime pay owed to employees, and will pay $3.3 million in wages and over $2.5 million in damages to employees in several states, including New York and California.
In a statement regarding the settlement, a DOL spokesperson said 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."
"We are particularly pleased that LinkedIn also has committed to take positive and practical steps towards securing future compliance," said Dr. David Weil, administrator of the Wage and Hour Division.
As of April this year the social network company reported it had 300 million members worldwide.
In its statement, LinkedIn noted the wage violation was the result of poor record keeping.
"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, VP of corporate communications.
The federal investigation revealed the Mountain View, Calif.-based company did not track or pay employees for all hours worked and did not adhere to the Fair Labor Standards Act.
The FLSA mandates companies keep accurate time and payroll records, and outlaws retaliation against employees who exercise rights under the law. The violation of the act will see the employers pay to employees for their back wages and an equal amount in liquidated damages.
In addition to the payments, the company has agreed to implement training regarding company work requirements related to nonexempt workers.
Of the 300 million members, 67 percent of LinkedIn members are outside of the U.S. It's most recent financial report reveals revenue for the second quarter was $534 million, an increase of 47 percent compared with $364 million in the second quarter of 2013.
"LinkedIn delivered strong financial results in the second quarter while maintaining investment in our member and customer offerings," stated Jeff Weiner, CEO of LinkedIn, in a statement regarding the earnings report.
