(Adds exact number of current and former employees, Labor
Department comment on timing of the settlement payment, updates
By Amanda Becker
WASHINGTON Aug 4 LinkedIn Corp agreed
to pay about $6 million in back overtime and damages to 359
current and former employees after a U.S. Department of Labor
investigation found the online career networking company
violated the country's wage law.
In a settlement announced by the Labor Department on Monday,
LinkedIn will pay more than $3.3 million in retroactive overtime
wages and more than $2.5 million in damages to workers in
California, Illinois, Nebraska and New York.
A Labor Department representative said LinkedIn has mailed
the payments to the workers covered by the settlement.
LinkedIn has "shown a great deal of integrity by fully
cooperating with investigators and stepping up to the plate
without hesitation to help make workers whole," said David Weil,
the administrator of the Labor Department's Wage and Hour
Division, in a statement.
A spokeswoman said that talent is LinkedIn's No. 1 priority,
adding that the company was eager to work closely with the Labor
Department to reach the settlement.
"This was a function of not having the right tools in place
for a small subset of our sales force to track hours properly,"
said Shannon Stubo, vice president of corporate communications.
The Labor Department's investigation revealed that LinkedIn,
based in Mountain View, California, failed to record and
compensate workers for all hours worked, violating provisions of
the Fair Labor Standards Act (FLSA).
In addition to the settlement payment, LinkedIn will train
all employees that "off-the-clock work" is prohibited for all
non-exempt workers, the Labor Department said.
The FLSA requires that non-exempt workers, who are not
salaried managers, be paid the federal minimum hourly wage of
$7.25 plus overtime pay at the minimum rate of 1.5 times the
regular hourly rate for hours worked past 40 in a given work
LinkedIn's shares closed at $202.50 on Monday, up 0.4
percent on a day when the major U.S. stock indexes bounced back
after Friday's sharp selloff.
Last week, LinkedIn reported a 47 percent jump in
second-quarter revenue, surpassing analysts' expectations.
The website's membership jumped by a third to 313 million in
the quarter that ended June 30.
(Reporting by Amanda Becker; Editing by Kevin Drawbaugh and Jan