LinkedIn paying nearly $6M in unpaid overtime after Labor Dept. inquiry

Summary:The US federal agency determined LinkedIn violated overtime and record-keeping provisions of the Fair Labor Standards Act in four states.

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LinkedIn is about to cough up some serious cash to its employees following an inquiry by the US Department of Labor.

The US federal agency conducted an investigation and ruled LinkedIn violated overtime and record-keeping provisions of the Fair Labor Standards Act (FLSA) in four states.

The FLSA mandates 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.

According to the Department of Labor, LinkedIn "failed to record, account and pay for all hours worked in a work week."

After being notified by the Labor Department, the Mountain View, Calif.-based company 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 liquidated damages will be paid directly to the affected employees.

LinkedIn has also agreed to provide compliance training and better educate employees about company policies prohibiting off-the-clock work to all nonexempt employees and their managers.

Topics: Social Enterprise, Government : US, IT Employment, Legal, Tech Industry

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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