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Unpaid Wages and Overtime Pay Lawyer Update: LinkedIn agrees to pay $6M as part of wage-related investigation

above-the-bar-logo-no12Our New York Overtime Pay Lawyers have been asked to comment on the recent settlement between United State Department of Labor and LinkedIn Corp. After an investigation, the Company has agreed to pay almost $3,500,000.00 in unpaid wages to approximately 360 employees in New York, California, Illinois and Nebraska. The Company further agreed to pay over $2,500,000.00 in liquidated damages. In total, the Company will pay almost $6 million dollars as a result of the investigation of its wage practices and settlement. This case underscores the importance of employers maintining proper employment records and paying its work force consistent with the Fair Labor Standards Act, New York Labor Law and other applicable statutes. Errors in wage practices can be costly for employers (who could be subject to a lawsuit, investigation or audit) and employees (who may not receive their proper pay in a timely manner. If you are an employee or employer who has questions about proper wage practices, contact our NY Employment Lawyers to confidentially discuss your concerns.

One of the areas of inquiry in the investigation was unpaid wages for employees relating to “off the clock” work. Technology, in part, has enabled employees to work from home and longer hours. Off the clock claims can include work from home, on smart phones and remote access email. Susana Blano, District Director for the US Department of Labor’s San Francisco division stated that “[o]ff 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…We urge all employers, large and small, to review their pay practices to ensure employees know their basic workplace rights and that the commitment to compliance works through all levels of the organization.” According to the investigation, LinkedIn did not record, account and pay for all hours worked in a workweek. Further, it has been reported that LinkedIn did not classify some of its sales force as non-exempt (overtime eligible) and did not keep track of their hours worked. As part of the settlement, LinkedIn agreed to an enhanced compliance agreement that includes providing compliance training and distributing its policy prohibiting off-the-clock work to all nonexempt employees and their managers, meeting with managers of current affected employees to remind them that overtime work must be recorded and paid for, and reminding employees of the company’s prohibiting retaliation against any employee who raises concerns about workplace issues. In addition, other types of wage violations in general include:

  • Non-Payment of wages (including minimum wage payments)
  • Under reporting of hours worked
  • Non-Payment for mandatory overtime work
  • Unpaid overtime wages and pay
  • Unpaid Paid Tme Off (PTO) (example: accrued vacation)
  • Misclassification of exempt and non-exempt employees
  • Unpaid sales commissions
  • Unpaid bonuses
  • Payment for breaks for meals and rest

In general, an employer who requires or permits an employee to work overtime is generally required to pay the employee premium pay for such overtime work. There are some exceptions to paying overtime and each situation is fact specific. Please call our office at (800) 893-9645 to learn your options and rights.