In a settlement announced by the Labor
Department on Monday, LinkedIn will 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
A Labor Department representative said LinkedIn has mailed the
payments to the workers covered by the settlement.
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," said David Weil,
the administrator of the Labor Department's Wage and Hour
Division, in a statement.
A spokeswoman said that talent is LinkedIn's No. 1 priority,
adding that the company was eager to work closely with the Labor
Department to reach the settlement.
"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.
The Labor Department's investigation revealed that LinkedIn,
based in Mountain View, California, failed to record and
compensate workers for all hours worked, violating provisions of
the Fair Labor Standards Act (FLSA).
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.
The FLSA requires that non-exempt workers, who are not salaried
managers, be paid the federal minimum hourly wage of $7.25 plus
overtime pay at the minimum rate of 1.5 times the regular hourly
rate for hours worked past 40 in a given work week.
LinkedIn's shares closed at $202.50 on Monday, up 0.4 percent on
a day when the major U.S. stock indexes bounced back after
Friday's sharp selloff.
Last week, LinkedIn reported a 47 percent jump in second-quarter
revenue, surpassing analysts' expectations.
The website's membership jumped by a third to 313 million in the
quarter that ended June 30.
(Reporting by Amanda Becker; Editing by Kevin Drawbaugh and Jan
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