Home Networking service LinkedIn settles with Department of Labor over alleged wage discrimination

LinkedIn settles with Department of Labor over alleged wage discrimination

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SAN FRANCISCO (AP) — Professional networking service LinkedIn has agreed to pay $1.8 million in back wages to hundreds of female workers to settle a pay discrimination lawsuit filed by U.S. labor investigators.

The US Department of Labor announced on Tuesday that it has reached a settlement agreement with LinkedIn to resolve allegations of “systemic gender-based wage discrimination” in which women were paid less than men in comparable positions.

The settlement affects nearly 700 women who worked in engineering, product or marketing from 2015 to 2017 at the company‘s offices in San Francisco and Sunnyvale, Calif. This includes the period before and after Microsoft acquired LinkedIn for $26.2 billion in 2016.

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LinkedIn said in a statement that “while we have agreed to settle this matter, we do not agree with the government’s assertions; LinkedIn pays and has paid its employees fairly and equitably by comparing similar work. »

The settlement agreement says LinkedIn argued that its statistical models did not identify pay disparities. The government said its own analysis had revealed large wage disparities even after controlling for “legitimate explanatory factors”.

The agency said the matter was sparked by a routine assessment by its Office of Federal Contract Compliance Programs. Federal laws prohibit discriminatory practices in companies that contract with the federal government.