In a move that has caused some embarrassment to the company, LinkedIn has agreed to pay $3.3 million in back overtime wages and $2.5 million in damages to workers who were required to work off the clock. In addition, the company has agreed to provide all employees with compliance training. It also has taken steps to help managers remember that all employees must be paid $7.25 for every hour worked and time and a half for overtime.
The damages and back pay is a result of a United States Department of Labor investigation after employees reported that they were not being treated fairly under the Fair Labor Standards Act. Approximately 359 former and current employees will receive some of this money. These employees worked in LinkedIn offices in California, Illinois, Nebraska and New York.
The United States Department of Labor says they are extremely satisfied with how the company responded to the situation that the company says arose because the right tools were not in place to track hours for part of the sales force. LinkedIn says they had taken steps to correct part of the problem before the United States Department of Labor stepped in.
LinkedIn says that they know that their employees are their number one asset. They say they were unaware of the problem and immediately took corrective action. They have also reminded managers that they will be held responsible for seeing that the policy is enforced and that all employees be paid for all work that they complete.
The company also says that no employees will be punished for reporting their concerns to the United States government. They also have taken steps to remind employees that they have the right to speak to company officials about employee policies that they feel are wrong without fear of retaliation.
This move follows closely on an announcement that Apple, Google, Intel, and Adobe would pay $324 million to settle a wage-fixing lawsuit. In this suit, the United States Department of Justice recovered emails where top executives agreed not to hire each other employees. Apple founder Steve Jobs and Google CEO Eric Schmidt had sent the emails to each other. About 60,000 workers, mostly in California, were affected by this lawsuit. Five software engineers originally pursued this case in 2011, but the United States Fifth Court of Appeals agreed to let other workers join the suit, so that everyone’s lawyer prices could be lower. While the court ruled with the employees, many say that the issue still remains. They say it is now just an unwritten policy that no one dares break.
LinkedIn stock finished up for the day in a stock market that saw mostly ups. Officials hope that this issue has been resolved and expects no further issues.
Major tech companies including Apple, Google, Intel and Adobe had to pay $324 million to settle a lawsuit accusing the companies of wage-fixing. Tech employees sued the tech giants after the U.S. Department of Justice uncovered emails between top executives in which they agreed not to poach one another’s employees.