Many Georgia business people are familiar with and may be members of LinkedIn. What they may not know is that a wage and hour complaint was filed against the company. Recently, the company was ordered to reimburse unpaid overtime and other damages to employees to the tune of nearly $6 million.
The problem centered around the company's treatment of certain employees as being exempt from overtime. As such, no discernible records were kept by LinkedIn Corp. regarding the number of hours each of 359 employees worked above and beyond 40 hours per week. The former and current employees worked mainly in sales, recruiting, marketing and talent. Each employee was interviewed in an attempt to determine the employees worked an average of five hours per week in overtime.
In general, federal law requires that companies determined to be in violation of overtime laws pay the affected employees back pay and damages in an equal amount. The amount of liquidated damages can be reduced at the discretion of the Department of Labor. In this case, the total amount ordered to be paid is $5.8 million -- $3.3 million in back wages and $2.5 million in damages. The company will also make sure everyone in its organization understands and complies with the law.
The order issued in this wage and hour complaint could serve as a reminder to Georgia business owners to be sure their employees are properly classified and being paid in accordance with the Fair Labor Standards Act. If there is an error, it may be possible to correct it before a complaint is filed and extra expenditures are added. Otherwise, a company could end up paying much more than just back wages.
Source: sfgate.com, "LinkedIn ordered to pay $6 million in unpaid overtime wages and damages", Kathleen Pender, Aug. 8, 2014