Under a settlement announced by the Labor Department on yesterday, the career-focused social network will pay more than USD 3.3 million in overtime back wages and USD 2.5 million in damages to be paid directly to workers in California, Illinois, Nebraska and New York.
"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," said David Weil, administrator of the Labor Department's Wage and Hour Division.
Labor Department investigators found that LinkedIn violated the overtime and record-keeping provisions of the Fair Labor Standards Act by neglecting to record, account and pay for all hours worked in a workweek.
Under the law, covered, nonexempt employees must be paid at least the federal minimum wage of USD 7.25 per hour for all hours worked, plus time and a half their regular hourly rates for any work beyond 40 hours in a week.
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LinkedIn has also agreed to provide compliance training and distribute its policy prohibiting off the clock work to all nonexempt employees and their managers, remind managers of the affected employees that overtime work must be recorded and paid for, and reiterate its policy prohibiting retaliation against any employee who raises workplace concerns.
"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 organisation.