LinkedIn Reaches $5.9 Mln Settlement With US Labor Dept For Overtime Violations

(RTTNews) - Online professional networking site LinkedIn Corp. (LNKD) agreed Monday to pay nearly $6 million to settle an investigation by the US Labor Department for violation of the overtime and record-keeping provisions of the Fair Labor Standards Act or FLSA. The company also agreed to take proactive steps to prevent repeat violations.

"This company 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. We are particularly pleased that LinkedIn also has committed to take positive and practical steps towards securing future compliance," said Dr. David Weil, administrator of the Wage and Hour Division.

LinkedIn will pay $3.35 million in overtime back wages and $2.51 million in liquidated damages to 359 former and current employees working at its branches in California, Illinois, Nebraska and New York.

The investigators from the U.S. Department of Labor's Wage and Hour division found that LinkedIn failed to record, account and pay for all hours worked in a workweek.

According to the FLSA, the covered, nonexempt employees should 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.

The Act also requires employers to maintain accurate time and payroll records, and it prohibits retaliation against employees who exercise their rights under the law. The violation of the Act will see the employers pay to employees for their back wages and an equal amount in liquidated damages.

"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 Susana Blanco, district director for the division in San Francisco.

LNKD closed Monday's regular trading session at $202.50, up $0.72 or 0.36% on a volume of 3.06 million shares.