LinkedIn, the professional networking platform, has reached an agreement with the US Department of Labor to pay $1.8 million to female employees who the agency said received significantly less compensation than their male colleagues from 2015 to 2017, the department said Tuesday.
according to statment The agency released, LinkedIn denied 686 women equal pay in its San Francisco office and at its Sunnyvale, California headquarters. Women have worked in engineering, marketing and product roles.
During the routine assessment, the agency found that the women involved were paid at a “statistically lower rate” than their male counterparts even after taking into account “legitimate explanatory factors,” according to the conciliation agreement Between LinkedIn and the Department of Labor.
“Our agreement will ensure that LinkedIn better understands its obligations as a federal contractor,” Jane Suhr, regional director of the Department of Labor’s Office of Federal Contract Compliance Programs, said in the agency statement.
at statment LinkedIn, which is owned by Microsoft, denied on Tuesday that it discriminated against certain employees.
“While we have agreed to settle this matter, we do not agree with the government’s claim,” the statement said.
The settlement includes about $1.75 million in back pay and more than $50,000 in benefits paid to the women, according to the conciliation agreement.
As part of the settlement, LinkedIn also agreed to send the agency reports over the next three years as it evaluates compensation policies and makes salary adjustments, the Labor Department said. The company agreed to run a training program for employees on “nondiscrimination obligations.”
Last year, LinkedIn reported, female employees earned $0.999 for every dollar earned by male employees. The company said on its website website It employed more than 19,000 people worldwide.
“LinkedIn pays and pays its employees fairly and equitably when comparing similar work,” the company’s statement said.
under 1965 executive orderfederal contractors, including LinkedIn, must provide its employees with an “equal opportunity” and cannot discriminate on the basis of gender, gender identity, or other factors.
In general, women in the United States earn less than men. In 2021, women working full-time were earning about 83 percent of what their male counterparts earned US Bureau of Labor Statistics reported in January.
Tech companies have faced particular scrutiny over what critics say has failed to provide equal opportunities for women and 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 Asian female employees and applicants.
Under an agreement with state authorities in Rhode Island, Pinterest pledged $50 million in November 2021 To undertake reforms, in order to resolve allegations that it discriminates against women and people of color.