Professional networking platform LinkedIn has reached an agreement with the US Department of Labor to pay $1.8 million to female employees who received far less compensation than their male colleagues, the department said on Tuesday.
According to a statement released by the US agency, women working in engineering and marketing professions at the online-networking company's San Francisco headquarters and engineering and product jobs at its Sunnyvale headquarters were not paid as much as their male counterparts.
Under the terms of the agreement, LinkedIn will pay $1.8 million in back wages and interest to the affected workers and conduct a staff training program to ensure compliance with LinkedIn’s non-discrimination obligations.
LinkedIn will evaluate – for the next 3 years – whether the company’s compensation is gender-neutral, and make salary adjustments if not. Additionally, LinkedIn will revise its compensation policies and practices and will monitor and report on its compliance with federal contract obligations.
“In addition to recovering $1.8 million in back wages and interest for these workers, our agreement will ensure that LinkedIn better understands its obligations as a federal contractor and complies in the future,” Jane Suhr, a regional director of the Labor Department’s Office of Federal Contract Compliance Programs, said in the agency’s statement.
LinkedIn denied that it discriminated against certain employees, according to a statement it made on Tuesday.
“While we have agreed to settle this matter, we do not agree with the government’s claims; LinkedIn pays and has paid its employees fairly and equitably when comparing similar work,” the statement said.