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LinkedIn settles with feds, agrees to pay nearly $6M in FLSA ‘off the clock’ and overtime case

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LinkedIn settles with feds, agrees to pay nearly $6M in FLSA ‘off the clock’ and overtime case

Aug 4, 2014, 10:09 pm CDT

Notified by the feds that it had violated wage-and-hour laws, a well-known company opted to settle the case rather than fight allegations that nonexempt hourly employees in four states weren’t paid for all of their work.

LinkedIn Corp. agreed to pay $3.3 million in overtime back wages and $2.5 million in liquidated damages to 359 workers in California, Illinois, Nebraska and New York, the U.S. Department of Labor announced in a Monday press release praising the company for its cooperation. LinkedIn also will train managers on compliance with the Fair Labor Standards Act and remind employees that LinkedIn prohibits retaliation against workers who report compliance concerns.

“This was a function of not having the right tools in place for a small subset of our sales force to track hours properly,” Shannon Stubo told Reuters. She serves as vice president of corporate communications for LinkedIn.

Bloomberg and the San Francisco Chronicle also have stories.

Susana Blanco, who serves district director for Labor Department’s wage-and-hour division in San Francisco, said it would be a good idea for other companies to review their policies.

“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,” Blanco said in the release. “We urge all employers, large and small, to review their pay practices to ensure employees know their basic workplace rights and that the commitment to compliance works through all levels of the organization. The department is committed to protecting the rights of workers and leveling the playing field for all law-abiding employers.”

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