Current and former LinkedIn employees in California, Nebraska, Illinois and New York have won a $6 million settlement for unpaid wages and damages. LinkedIn Corp. was ordered to pay the compensation after the U.S. Department of Labor determined that the company was guilty of failing to accurately record and pay for all of the hours worked by its employees.
According to the DOL, 359 LinkedIn employees were affected by the unpaid overtime. LinkedIn agreed to pay a total of $3.35 million for back wages and $2.51 million for damages. The company has also agreed to distribute information about its overtime policy and train employees on how to comply with overtime laws.
LinkedIn was founded in 2002. It provides job recruitment services and connects business professionals so that they can share information. The company currently employs 5,700 people, and it is expected to begin leasing a new building in San Francisco that can house 2,500 workers. A representative for the company said that the unpaid overtime wages were a result of some managers and employees not having the right tools to record their hours properly.
Employees who work more than 40 hours in a single week are entitled to overtime pay, regardless of whether or not they work for a salary. If an employee has not been paid overtime, he or she may decide to consult an employment law attorney about filing an unpaid overtime claim against the employer. Many cases of unpaid overtime will involve several employees, and the attorney might be able to offer advice about seeking class-action status.
Source: BloombergBusinessweek, “LinkedIn Pays $6 Million for Unpaid Overtime, Damages”, Sarah Frier , August 04, 2014