LinkedIn Reaches $6M Settlement Agreement With Department of Labor

Social media site pays overtime and damages to 359 employees

LinkedIn Corp said Monday it would pay more than $6 million in overtime and damages to 359 current and former employees under the terms of a settlement agreement with the U.S. Department of Labor, according to published reports.

The business social media site violated U.S. wage laws, the Labor Department said, failing to properly compensate workers for overtime hours.

LinkedIn agreed to pay more than $3.3 million in retroactive overtime wages and more than $2.5 million in damages to workers in California, Illinois, Nebraska and New York.

David Weil, the administrator of the Labor Department's Wage and Hour Division, said in a statement that 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.”

The Labor Department said LinkedIn has mailed payments to the workers covered by the settlement, Reuters reported.

LinkedIn characterized the case as a technical error and said it had already started making corrections when it was contacted by the Labor Department. "This was a function of not having the right tools in place for some employees and their managers to track hours properly," a LinkedIn spokeswoman told the Wall Street Journal.

LinkedIn said it would inform its managers that overtime work must be recorded and paid for, and that so-called “off the clock” work was prohibited for workers who are not salaried managers.

The announcement had little impact on LinkedIn's shares, which closed 0.4 percent higher on Monday. Last week, the social media company reported a second-quarter loss, but a 47 percent increase in revenue, which beat analyst estimates.

Publish date: August 5, 2014 © 2020 Adweek, LLC. - All Rights Reserved and NOT FOR REPRINT