Some current and former employees of LinkedIn will be receiving a payout from the company for unpaid wages and damages. LinkedIn is going to pay almost $6 million to employees spread across four states, including New York, California, Illinois and Nebraska. According to the U.S. Department of Labor, LinkedIn's illegal employment activity affected 359 employees. The payments that will be made to these employees include $3.35 million in overtime back wages and $2.51 million in damages.
According to the Department of Labor, LinkedIn did not record all of the hours that were put in by its employees, and the company also failed to log many overtime hours. LinkedIn will now be providing training to its workforce to instruct its employees on how to comply with wage and hour laws. To try to limit the number of future overtime disputes, the company will also distribute its policy about working overtime to its work force.
LinkedIn, founded in 2002, is based in Mountain View, California, but it has been expanding its workforce of about 5,700 employees throughout the U.S. LinkedIn is also in the works of opening a new office in San Francisco that will accommodate up to 2,500 employees. A spokesperson for LinkedIn said that the company was eager to work with the Department of Labor to rectify the problem, and she said that the company did not have the right tools in place to allow managers to properly track the hours of other employees. She added that LinkedIn has already begun to take measures to remedy these shortcomings.
A district director for the Department of Labor said that too many U.S. employees put in hours that go unrecorded and unpaid. Employees who believe that they may be the subject of an employer's wage and hour violations may want to consult with an attorney.
Source: Business Week, "LinkedIn Pays $6 Million for Unpaid Overtime, Damages", Sarah Frier, August 04, 2014