Non-payment of overtime to workers is not just a brick-and-mortar company issue. It is also prevalent in online social media niches.
Consider the case of LinkedIn, one of the more prominent social media platforms for connecting and finding jobs. The company recently paid out close to $6 million in back wages and damages to 359 current and former employees after an investigation. The settlement covered workers in New York, Illinois, Nebraska and California.
LinkedIn claimed that the company did not have the right tools for one sector of its workforce. While that may explain the violation, it is the employer’s responsibility to keep abreast of all rules, regulations and laws that affect their company and workforce. Ignorance of the law is no excuse.
LinkedIn did not account for or record all hours worked during a week — either with or without malice or forethought, a direct violation of the Fair Labor Standards Act. The law clearly states that non-exempt workers must be paid the federal minimum hourly wage ($7.25) for all hours worked, plus time and a half overtime for putting in more than 40 hours a week.
The company must now provide compliance training, ensure all workers are aware of its policy prohibiting off-the-clock work for all non-exempt workers/managers, insist all overtime hours be recorded and paid for and stress that retaliation in the workplace for raising employment issues is not condoned.
Call us today at 916.486.1712 or visit http://www.lawbarron.com.