LinkedIn Corp (LNKD) Reaches a Settlement Worth $6 Million With Labor Department

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LinkedIn Corp (NYSE:LNKD) is a company that has seen a downfall and a rise during this year. The company has been on a downside in the first half of the year and then moved up in the second half. The company will have to pay approximately $6 million to about 350 current and ex-employees of the company to settle with the U.S. Department of Labor’s investigation found the company breaching the wage law of USA.

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According to an announcement made by the Labor Department this Monday, cited by re/code, LinkedIn Corp (NYSE:LNKD) will have to pay $3.3 million to its former ex-employees and $2.5 million to the employees working at the company’s New York, Illinois, Nebraska and California offices.

David Weil, Labor Department’s Wage and Hour Division administrator, said that LinkedIn Corp (NYSE:LNKD) as a company has cooperated very well during the investigation and has been very honest. The company’s spokeswoman was quoted by re/code as saying that LinkedIn Corp (NYSE:LNKD) ranks it talent very high and it is keen to work closely with the Labor Department to settle the issue.

Shannon Stubo, corporate communications vice-president at LinkedIn Corp (NYSE:LNKD), was cited as saying that the issue occurred due to the lack to proper tools to track the work of the sales employees of the company. The labor department also said that the company would train the non-exempt employees to stop working overtime without compensation.

According to the FLSA requirement, any non-exempt employee (other than salaried managers), should be paid a minimum of $7.25 and overtime compensation for the number of hours worked over the set 40 hour work week.

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