US regulator orders LinkedIn to pay $6m in unpaid wages and damages
Business focussed social networking hub LinkedIn is facing embarrassment today after regulators ordered it to pay £3.6m in unpaid wages and damages after it was found to have failed to account for all hours worked by its employees.
A total of 390 current and former staff will benefit from the pay out with the social network also being ordered to improve compliance training and distribute its policy on overtime to all relevant staff.
Attempting to explain the failings Shannon Stubo, vice president of corporate communications at LinkedIn, said: “This was a function of not having the right tools in place for a small subset of our sales force to track hours properly.”
The investigation was conducted by the US Department of Labor which has been cracking down on ‘off the clock hours’.
In a statement David Weil, administrator of the wage and hour division, said: “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."