Published Date: 08/18/2014
By George Ports
LinkedIn Corp. has agreed to pay $3,346,195 in overtime back wages and $2,509,646 in liquidated damages to 359 former and current employees working at company branches in California, Illinois, Nebraska and New York. The US Department of Labor’s (USDOL) Wage and Hour Division conducted an investigation revealing that LinkedIn was in violation of the Fair Labor Standard Act’s (FLSA) overtime and recordkeeping provisions. When notified of the violations, the company agreed to pay all the overtime back wages due and to take proactive steps to prevent repeat violations.
Investigators found that LinkedIn failed to record, account and pay for all hours worked in a workweek. In addition to paying back wages and liquidated damages, LinkedIn entered into a compliance agreement with the USDOL that includes agreeing to: provide compliance training and distribute its policy prohibiting off-the-clock work to all nonexempt employees and their managers; meet with managers of current affected employees to remind them that overtime work must be recorded and paid for; and remind employees of LinkedIn’s policy prohibiting retaliation against any employee who raises concerns about workplace issues.
The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their regular hourly rates for hours worked beyond 40 per week. The FLSA provides that employers who violate the law are, as a general rule, liable to employees for their back wages and an equal amount in liquidated damages. Liquidated damages are paid directly to the affected employees. Additionally, the law requires employers to maintain accurate time and payroll records, and it prohibits retaliation against employees who exercise their rights under the law.
For more information about the Wage and Hour Division and other federal wage laws it enforces, go to the Division’s website at http://www.dol.gov/whd/.