LinkedIn, the skilled networking platform, has reached an agreement with the U.S. Department of Labor to pay $1.8 million to female employees who the agency said received far less compensation than their male colleagues from 2015 to 2017, the department said on Tuesday.
In response to a statement released by the agency, LinkedIn denied 686 women equal pay at its San Francisco office and at its headquarters in Sunnyvale, Calif. The ladies worked in engineering, marketing and product roles.
During a routine evaluation, the agency found that the ladies in query had been paid “at a statistically significant lower rate” than their male counterparts even after making an allowance for “legitimate explanatory aspects,” in line with the conciliation agreement between LinkedIn and the Labor Department.
“Our agreement will make sure that LinkedIn higher understands its obligations as a federal contractor,” Jane Suhr, a regional director of the Labor Department’s Office of Federal Contract Compliance Programs, said within the agency’s statement.
In a statement on Tuesday, LinkedIn, which is owned by Microsoft, denied that it discriminated against certain employees.
“While now we have agreed to settle this matter, we don’t agree with the federal government’s claim,” the statement said.
The settlement includes around $1.75 million in back pay and greater than $50,000 in interest to be paid to the ladies, in line with the conciliation agreement.
As a part of the settlement, LinkedIn also agreed to send the agency reports over the following three years because it evaluates its compensation policies and makes salary adjustments, the Labor Department said. The corporate agreed to run an worker training program on “nondiscrimination obligations.”
LinkedIn reported that, last yr, its female employees made $0.999 for each dollar its male employees earned. The corporate said on its website that it employed greater than 19,000 people worldwide.
“LinkedIn pays and has paid its employees fairly and equitably when comparing similar work,” the corporate’s statement said.
Under a 1965 executive order, federal contractors, including LinkedIn, must provide “equal opportunity” to its employees and can’t discriminate on the premise of sex, gender identity or other aspects.
Basically, women in the US have been paid lower than men. In 2021, women working full time earned about 83 percent of what their male counterparts did, the U.S. Bureau of Labor Statistics reported in January.
Tech firms have faced particular scrutiny over what critics say are failures to supply equal opportunities to women and other people of color.
In February 2021, Google reached a $3.8 million settlement with the Labor Department amid accusations that it made hiring and compensation decisions that discriminated against female and Asian employees and applicants.
Under an agreement with state authorities in Rhode Island, Pinterest pledged $50 million in November 2021 to creating reforms, with the intention to resolve allegations that it discriminated against women and other people of color.