Professional-networking site LinkedIn is agreeing to pay nearly $3.35 million in unpaid overtime to 359 workers, in addition to $2.5 million in damages under a deal announced Monday with the US Department of Labor.
The accord covers current and former employees at LinkedIn offices in California, Illinois, Nebraska, and New York.
"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," David Weil, administrator of the Wage and Hour Division, said in a statement.
Labor regulators said LinkedIn, which was in breach of the Fair Labor Standards Act, agreed to prohibit off-the-clock work by employees eligible for overtime, like those in non-managerial roles. Under the accord, LinkedIn also agreed not to retaliate against an employee "who raises concerns about workplace issues."
Federal wage law demands that those eligible for overtime get paid time and one-half of their regular hourly wage for hours worked beyond 40 a week.
LinkedIn said in a statement:
"Talent is LinkedIn's number one priority, so of course, we were eager to work closely with the Dept. of Labor to quickly and equitably rectify this situation. This was a function of not having the right tools in place for a small subset of our sales force to track hours properly; prior to the DoL approaching us, we had already begun to remedy this. LinkedIn has made every effort possible to ensure each impacted employee has been made whole."