LinkedIn in $6m labour violation settlement

The networking site agreed to take proactive steps to prevent future violations

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LinkedIn in $6m labour violation settlement The firm said talent was its "number one priority" and it was eager to "rectify the situation".
By  Helen Gaskell Published  August 5, 2014

LinkedIn has agreed to pay $6m in wages and damages after regulators found it failed to account for all the hours worked by its employees, online media reports.

The US Department of Labour found that the online career networking company violated the country's wage law and are to pay more than $3.3 million in retroactive overtime wages and more than $2.5 million in damages to 359 former and current employees in California, Illinois, Nebraska and New York.

"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, vice president of corporate communications at LinkedIn.

The firm said talent was its "number one priority" and it was eager to "rectify the situation".

"Off the clock hours are all too common for the American worker. This practice harms workers, denies them the wages they have rightfully earned and takes away time with families," said Susana Blanco, of the US Labour Department.

The regulator added that LinkedIn had cooperated with the investigation and had agreed to take proactive steps to prevent future violations.

"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 Wage and Hour Division.

"We are particularly pleased that LinkedIn also has committed to take positive and practical steps towards securing future compliance."

In addition to the settlement payment, LinkedIn will train all employees that "off-the-clock work" is prohibited for all non-exempt workers, the Labor Department said.

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