The U.S. Labor Department has announced a settlement with online business networking service LinkedIn after an investigation revealed the company failed to properly compensate employees for working overtime.
According to a news release from the Department's Wage and Hour Division, LinkedIn has agreed to pay $3,346,195 in overtime back wages to and $2,509,646 in liquidated damages to 359 employees affected by the company's violations of the Federal Labor Standards Act (FLSA)
What is the FLSA and how did the company violate it?
Federal Labor Standards Act
The Federal Labor Standards Act (FLSA) is the federal law setting the minimum standards for workers' wages and hours. It also defines what type of activities are considered "work" as well as a wide variety of other workers' rights.
Under the FLSA, employees who are not considered exempt must be paid overtime for any hours worked over 40 in a given workweek. The overtime rate must be one-and-a-half times the worker's regular rate of pay, and must be paid in actual wages -- not in goods or time off. This right cannot be waived by the employee.
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According to the Labor Department, LinkedIn failed to record, account, and pay employees for all hours worked in a workweek to employees in California, New York, Illinois, and Nebraska.
When made aware of the violations, LinkedIn agreed to pay both the back wages due as well as liquidated damages to affected employees as required under the FLSA. In addition, the company pledged to provide training to employees regarding the FLSA's prohibition on "off-the-clock work" for non-exempt employees as well prohibitions on retaliating against employees who raise concerns about workplace issues.
"'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," said Department of Labor San Francisco District Director Susana Blanco in a recent release.
If you have questions regarding your business' overtime and wage policies, a wage and hour attorney can help ensure that you are in compliance with federal, state, and local employment laws,
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- LinkedIn to pay nearly $6 million in U.S. Labor Department settlement (Reuters)
- Top 5 FLSA & Overtime Rules for Employers (FindLaw's Free Enterprise)
- Employer Didn't Know About Overtime Work, Wins FLSA Lawsuit (FindLaw's U.S. Seventh Circuit Blog)
- Do You Have to Pay Unauthorized Overtime? (FindLaw's Free Enterprise)