Labor Department Orders LinkedIn To Pay Employees $6 Million For Unpaid Overtime

The figure includes over $3.3 million in retroactive wages and over $2.5 million in damages.

LinkedIn is synonymous with profile lurking and best practices for glamming up your CV to find a new job. But now, the white-collar social network finds itself in the midst of a very public labor dispute, as the U.S. Department of Labor has found LinkedIn guilty of treating some of its employees unfairly--and it's time to pay up.

According to Bloomberg Businessweek, LinkedIn will have to pay about $6 million to former and current employees in California, Illinois, Nebraska, and New York for unpaid overtime wages. The figure includes over $3.3 million in retroactive wages and over $2.5 million in damages.

"Talent is LinkedIn’s number one priority," LinkedIn spokeswoman Shannon Stubo said in a statement, "so of course, we were eager to work closely with the Department of Labor to quickly and equitably rectify this situation."

LinkedIn asserts that the unpaid wages were a result of not having the "right tools in place" for members of its sales force to track work hours. And the Department of Labor said in a statement that the social network has "shown a great deal of integrity by fully cooperating with investigators and stepping up to the plate without hesitation."

[Image: Flickr user Dave Collier]

Add New Comment

3 Comments

  • euexsv

    "Employers and employees should decide what arrangement works best for them and the Govt should stay out of it." Well exactly that, but obviously they didn't do it.

    I doubt any employee would like to work overtime and not be paid at least a bit more for that effort, don't you think?

    The point is companies are taking advantage of work force and that is NOT right.

  • euexsv

    One would expect USA tech media to tackle more labor issues with start-ups, like sexism, overtime work, misclassification of workers and in general labor rights that many many employees at start ups just don't know.

    Why not educating both sides on how to conduct fair play business? We learn of our own fate only once get fired and finally meet with employment lawyers to tell us our rights.

    Damn all these companies who are using cheap labor while only thinking on how to get their millions.

    Here is the full report - http://www.dol.gov/opa/media/p...

    and more on Dept of Labor web site.

  • Abu Badguy

    Overtime requirements are stupid. If employees want to work more than 40 hours a week they should be allowed to do so without extorting extra fees from their employers.

    Employers and employees should decide what arrangement works best for them and the Govt should stay out of it.

    What genius declared 40 hours as the work week? If someone wants to make extra money by working 42 hours a week, why can't the Govt allow that. Inflicting a time-and-a-half model for hours over 40 is archaic and stupid.