LinkedIn Agrees To Settlement For Unpaid Overtime, Back Wages

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When we read about certain employment violations, it can be easy to get the wrong idea. For instance, reading about a company that has failed to compensate employees properly might lead some people to believe that the failure was intentional or malicious; that the company intended to shortchange employees.

However, that is certainly not always the case. In many situations, any purported wage violations are unintentional and an unfortunate result of an inadequate system, especially as companies grow, change and adopt more complex employment structures. 

For example, recently it was announced that social and professional networking site LinkedIn failed to adequately compensate 359 employees over the course of one year. LinkedIn maintains that the wage discrepancy was purely unintentional and the unfortunate result of a technical error that prevented workers from accurately tracking hours, thereby creating the payment inconsistencies.

The company has addressed the issues and has recently agreed to pay nearly $6 million to current and former employees who worked overtime but were not properly compensated. Nearly half of that amount will go toward damages for people who were negatively impacted by the error.

This is just one example of how crucial it can be to have proper wage structures in place and to regularly revisit them in order to identify any potential issues. Many employers can end up facing accusations of wage and hour violations; but by taking a proactive approach and addressing the matter directly, employers can work toward a peaceful resolution while also protecting the reputation and future of the company.

Source: International Business Times, "LinkedIn To Spend $6M To Compensate Employees For Violating Labor Laws," Avaneesh Pandey