LinkedIn, the professional networking platform, has reached an agreement with the U.S. Department of Labor to pay $ 1.8 million to female employees who, according to the agency, have received much less compensation than their male colleagues since. 2015 to 2017, the department said Tuesday.
According to a statement released by the agency, LinkedIn denied 686 women equal pay at its San Francisco office and its headquarters in Sunnyvale, California. The women worked in engineering, marketing and product roles.
During a routine assessment, the agency found that the women in question had been paid “at a statistically significantly lower rate” than their male colleagues even after taking into account “legitimate explanatory factors”, according to the conciliation agreement. between LinkedIn and the Department of Labor.
“Our agreement will ensure LinkedIn better understands its obligations as a federal contractor,” said Jane Suhr, a regional director of the Department of Labor’s Office of Federal Contract Compliance Programs, in the agency’s statement.
In a statement on Tuesday, LinkedIn, which is owned by Microsoft, denied it discriminated against some employees.
“While we have agreed to resolve the issue, we disagree with the government’s claim,” the statement said.
The deal includes approximately $ 1.75 million in arrears and more than $ 50,000 in interest payable to women, according to the conciliation agreement.
As part of the deal, LinkedIn has also agreed to submit the agency’s reports over the next three years as it evaluates its compensation policies and makes salary adjustments, the Department of Labor said. The company has agreed to conduct an employee training program on “non-discrimination obligations”.
LinkedIn reported that its female employees earned $ 0.999 for every dollar earned by its male employees last year. The company said on its website that it employs more than 19,000 people worldwide.
“LinkedIn pays and has paid its employees fairly and fairly for similar jobs,” the company’s statement said.
Under a 1965 executive order, federal contractors, including LinkedIn, must provide “equal opportunity” for their employees and cannot discriminate on the basis of sex, gender identity or other factors.
In general, women in the United States were paid less than men. In 2021, women working full-time earned about 83 percent of what their male counterparts did, the U.S. Bureau of Labor Statistics reported in January.
Tech companies have come under particular scrutiny over what critics believe to be the failure to provide equal opportunities for women and people of color.
In February 2021, Google reached a $ 3.8 million settlement with the Department of Labor amid allegations of making hiring and compensation decisions that discriminated against female and Asian employees and candidates.
Under an agreement with Rhode Island state authorities, Pinterest pledged $ 50 million in November 2021 to implement reforms to resolve allegations of discrimination against women and people of color.