LinkedIn agrees to pay female employees who earn less than men in the US

LinkedIn has reached an agreement with the US Department of Labor to pay $1.8 million to female employees who the agency said received much lower pay than their male counterparts from 2015 to 2015. 2017, the department said Tuesday.

According to a statement released by the agency, LinkedIn denied payment equivalent to 686 women at its offices in San Francisco and at its headquarters in Sunnyvale, California. Women worked in engineering, marketing, and product roles.

During a routine assessment, the agency found that the women in question were paid “at a statistically much lower rate” than their male counterparts, even after taking into account “legitimate explanatory factors”, according to the settlement agreement between LinkedIn and the Ministry of Labour.

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

In a statement Tuesday, Microsoft-owned LinkedIn denied that it discriminated against certain employees.

“While we have agreed to resolve this matter, we do not agree with the government’s position,” the statement said.

The settlement includes about $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 deal, LinkedIn also agreed to report to the agency for the next three years as it evaluates its compensation policies and makes salary adjustments, the Labor Department said. The company agreed to run an employee training program on “non-discrimination obligations”.

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

“LinkedIn pays and has paid its employees fairly and equitably when comparing similar work,” the company said in a statement.

Under a 1965 executive order, federal contractors such as LinkedIn must provide “equal opportunity” to their employees and cannot discriminate on the basis of sex, gender identity or other factors.

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

Tech companies have faced special scrutiny over what critics say are failures to provide equal opportunity for women and people of color or color.

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

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