LinkedIn Stiffed Its Own Employees, Agrees to Pay Millions

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LinkedIn (LNKD), the social network to which professionals turn to find better jobs, has agreed to pay nearly $6 million in back-pay and damages for short-changing its own employees. The payout for violations of the Fair Labor Standards Act includes about $3.3 million in unpaid wages and $2.5 million in liquidated damages, affecting 359 current or former workers in New York, Nebraska, Illinois, and LinkedIn’s home state of California...

The employer-side law firm Seyfarth Shaw released (PDF) an analysis of Federal Judicial Center data earlier this year showing a 438 percent increase in the filing of Fair Labor Standards Act cases since 2000. Jurisdictions including New York State, Chicago, Houston, and Florida’s Miami-Dade County have passed legislation strengthening enforcement measures against “wage theft.”

Still, the Department of Labor has faced questions by pro-labor activists about whether it is up to doing its part of the job. “Everybody’s so happy that the Wage and Hour enforcement division went from 750 to 1,000” federal employees, Kim Bobo, the author of Wage Theft in America, said last year. “But that’s just pitiful.” A 2012 report (PDF) from the Progressive States Network found that the ratio of labor enforcement agents to U.S. workers workers had fallen from one for every 11,000 workers in 1941 to one for every 141,000.

View the full story from Bloomberg Businessweek