LinkedIn pays $6m to workers in labour dispute

The company was found to have not properly paid for workers' overtime

Business-focused social network LinkedIn has had to pay nearly $6 million (£3.5m) in back wages and damages to 359 former and current employees after an investigation by the US Department of Labor.

American regulators say that employees at the company weren’t properly paid for overtime work between February 2012 and February 2014.

$3.3m will be paid in missed overtime wages and more than will be paid $2.5m in damages.

LinkedIn has agreed to educate managers about proper practice regarding overtime work, as well ensure that employees are not indirectly punished or marginalised for raising concerns about workplace conditions.

"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 from the San Francisco Labor Department.

In the US the Fair Labor Standards Act (FLSA) requires that non-exempt workers be paid the federal minimum hourly wage of $7.25 plus overtime pay at the minimum rate of 1.5 times the hourly rate for any hours worked past 40 in a given week.

LinkedIn said that the investigation only involved a “small subset” of the company’s sale force in offices in California, Illinois and New York, with the regulator adding that the company had cooperated fully with them.

Shannon Stubo, vice president of corporate communications at LinkedIn, said that the issue was only “a function of not having the right tools in place for a small subset of our sales force to track hours properly.”

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