Professional networking platform LinkedIn has reached an agreement with the U.S. Department of Labor to pay $ 1.8 million for female employees who, according to the agency, received much less compensation than their male counterparts from 2015 to 2017, the department said Tuesday.
According to a statement released by the agency, LinkedIn has denied equal pay to 686 women at the San Francisco office and its headquarters in Sanival, California. Women worked in engineering, marketing and product roles.
In a routine assessment, the agency found that these women were paid “statistically significantly lower” than their male counterparts, even after taking into account “legitimate explanatory factors” under an agreement between LinkedIn and the Department of Labor. .
“Our agreement ensures that LinkedIn better understands its responsibilities as a federal contractor,” said Jane Suhra, regional director of the Department of Labor’s Federal Contract Compliance Office, in a statement to the agency.
In a statement issued Tuesday, LinkedIn, which is owned by Microsoft, denied discriminating against certain employees.
“Although we have agreed to resolve this issue, we do not agree with the government’s claim,” the statement said.
The settlement includes approximately $ 1.75 million in compensation and more than $ 50,000 in interest to be paid to women under the reconciliation agreement.
As part of the deal, LinkedIn has also agreed to send the agency reports over the next three years as it evaluates its compensation policy and makes salary adjustments, the Department of Labor said. The company agreed to a staff training program on “non-discriminatory obligations”.
LinkedIn reports that last year his female employees earned $ 0.999 for every dollar earned by male employees. The company said on its website that it employs more than 19,000 people worldwide.
“LinkedIn pays and remunerates its employees for fairly and equitably comparing similar work,” the company said in a statement.
Under the 1965 Executive Order, federal contractors, including LinkedIn, must ensure “equal opportunities” for their employees and can not 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 earned about 83 percent of their male counterparts, according to the U.S. Bureau of Labor Statistics in January.
Tech companies are facing particular scrutiny for what critics say does not provide equal opportunities for women and people of color.
In February 2021, Google reached a $ 3.8 million agreement with the Department of Labor over allegations that it made hiring and compensation decisions that discriminated against female and Asian employees and applicants.
Under an agreement with Rhode Island state government, Pinterest pledged $ 50 million in November 2021 to implement reforms to address allegations of discrimination against women and people of color.