LinkedIn agrees to pay women $1.8 million for discrimination

LinkedIn, the professional networking platform, has reached a deal with the US Department of Labor to pay $1.8 million to female employe...


LinkedIn, the professional networking platform, has reached a deal with the US Department of Labor to pay $1.8 million to female employees who the agency says received significantly less pay than their male colleagues from 2015 to 2017, the department announced Tuesday.

According to a statement published by the agency, LinkedIn denied equal pay to 686 women in its San Francisco office and headquarters in Sunnyvale, California. Women worked in engineering, marketing and product roles.

During a routine evaluation, the agency found that the women in question had been paid “at a statistically significant lower rate” than their male counterparts even after taking into account “legitimate explanatory factors”, according to the conciliation agreement between LinkedIn and the Department of Labor.

“Our agreement will ensure that LinkedIn better understands its obligations as a federal contractor,” Jane Suhr, regional director of the Department of Labor’s Office of Federal Contract Compliance Programs, said in the agency’s statement.

In a statement On Tuesday, LinkedIn, which is owned by Microsoft, denied discriminating against some employees.

“Although we have agreed to settle this matter, we do not agree with the government’s assertion,” the statement said.

The settlement includes approximately $1.75 million in back wages and more than $50,000 in interest to be paid to the women, according to the settlement agreement.

As part of the settlement, LinkedIn also agreed to send reports to the agency over the next three years as it evaluates its compensation policies and makes salary adjustments, the Labor Department said. The company agreed to set up an employee training program on “non-discrimination obligations”.

LinkedIn reported that last year its female employees earned $0.999 for every dollar earned by its male employees. The company said on its website that it employed more than 19,000 people worldwide.

“LinkedIn pays and has paid its employees fairly and equitably by comparing similar work,” the company’s statement read.

Under a 1965 Executive Decreefederal contractors, including LinkedIn, must provide “equal opportunity” to their employees and may not discriminate based on sex, gender identity, or other factors.

In general, women in the United States have been paid less than men. In 2021, full-time working women earned about 83% of what their male counterparts earned, the US Bureau of Labor Statistics reported in January.

Tech companies have come under particular scrutiny over what critics see as failures to provide equal opportunities for women and people of color.

In February 2021, Google reached a $3.8 million settlement with the Department of Labor amid accusations that it made hiring and compensation decisions that discriminate against female and Asian employees and applicants.

Under an agreement with Rhode Island state authorities, Pinterest pledged $50 million in November 2021 to make reforms, in order to resolve allegations of discrimination against women and people of color.

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Newsrust - US Top News: LinkedIn agrees to pay women $1.8 million for discrimination
LinkedIn agrees to pay women $1.8 million for discrimination
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