LinkedIn’s $6 million payout offers lessons on tracking time — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

LinkedIn’s $6 million payout offers lessons on tracking time

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in Centerpiece,Human Resources,Overtime Labor Laws

watch and moneyLinkedIn has built its entire business model on the idea of making the right connections. However, the company apparently has failed to connect with the Department of Labor’s rules on what constitutes an exempt employee under the Fair Labor Standards Act (FLSA).

The result: The business-oriented social media site was targeted for a DOL investigation and last month agreed to pay nearly $6 million in overtime back wages and liquidated damages to 359 former and current employees in four states. That averages to about $16,000 per affected employee.

The issue apparently revolved around a group of sales, recruiting and marketing employees who should have been eligible for overtime pay but weren’t because they were classified as exempt. Because the company believed the workers were exempt, it didn’t track the employees’ hours.

A LinkedIn spokesperson said the violations were caused by “not having the right tools in place … to track hours properly.”

The company also agreed to train its managers on the risk of encouraging (or tolerating) off-the-clock work.

“’Off 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,” said Susana Blanco, DOL district director in San Francisco.

Online resource: Learn more about the DOL rules on exemptions and overtime pay.

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