LinkedIn has agreed to pay $6 million (£3.6 million) as part of a labour violation settlement.
An investigation by the US Department of Labor found that the business-oriented social networking service had failed to account for all the hours worked by its employees. The figure included the repatriation of $3.3 million in unpaid wages and overtime while a further $2.5 million was paid in damages to workers in the firm's California, Illinois, Nebraska and New York offices. The regulator confirmed that LinkedIn had informed its workers of the action.
LinkedIn was praised by the US regulators after stating that it would "rectify the situation", adding that it regarded its talent pool as its "number one priority". The company stated that it would be working closely with the US Department of Labor to ensure that a settlement is reached and employees receive the money they are owed.
David Weil, administrator of the Wage and Hour Division, said: "This company has shown a great deal of integrity by fully cooperating with investigators and stepping up to the plate without hesitation to help make workers whole.
"We are particularly pleased that LinkedIn also has committed to take positive and practical steps towards securing future compliance."
LinkedIn's share price dropped 0.24 per cent in after hours tradings on August 5th following a largely positive day on Monday (August 4th) where it jumped 0.72 points to 202.50. The company has been going through some tough trading conditions in recent months including a drop of six per cent in May.
It came after the firm posted a weaker-than-expected revenue outlook of between $2.06 billion and $2.08 billion, lower than analysts' predictions of $2.1 billion. Profits for the January to March period were also down $13.4 million compared to 12 months earlier when it scored a $22.6 million profit.
Find up to date information on the FTSE 100 and spread betting strategies at City Index.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.