LinkedIn has reached a settlement with the Labor Department over allegations of gender-based pay discrimination.
The job-focused social network announced the compliance agreement with the Office of Federal Contract Compliance Programs on Tuesday and said it would pay $1.8 million in back wages to 686 female employees who worked in the company's California-based offices.
“Our agreement with LinkedIn Corp. resolves alleged pay discrimination that denied 686 female workers at the company’s San Francisco and Sunnyvale locations their full wages,” explained OFCCP's San Francisco Regional Director Jane Suhr in a press statement. “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.”
LinkedIn disputed the government's allegations.
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"While we have agreed to settle this matter, we do not agree with the government’s claims," the company said in a press statement.
LinkedIn failed to adhere to government standards that require federal contractors not to discriminate based on gender, federal authorities said.
While the Labor Department and LinkedIn agreed to the conciliation agreement, the tech company admitted no wrongdoing. The company also agreed to review its pay practices and conduct staff training to ensure compliance with its claims of "nondiscrimination obligations," according to the agreement.
The pay discrepancies were discovered after a routine review of the company's paid wages between 2015 and 2017 revealed the company was not providing equal pay to the affected employees in LinkedIn's engineering, marketing, and product departments.
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A larger settlement was enforced by the regulatory office when Goldman Sachs settled claims of engaging in race and gender discrimination by paying $10 million in back pay to 600 employees in 2019. Dell had a similar settlement that year, paying $7 million to resolve 20 compliance audits and resolve any claims of pay bias.