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, received far less compensation than their male colleagues from 2015 to 2017, the department said Tuesday.
According to a statement from the agency, LinkedIn denied 686 women equal pay at its San Francisco office and its headquarters in Sunnyvale, California. The women worked in technical, marketing and product positions.
During a routine review, the agency found that the women in question had been paid “at a statistically significant lower rate” than their male counterparts, even after taking into account “legitimate explanatory factors,” according to the mediation agreement between LinkedIn and the Labor Department.
“Our agreement will help LinkedIn better understand its obligations as a federal contractor,” Jane Suhr, regional director of the Labor Department’s Office of Federal Contract Compliance Programs, said in the agency’s statement.
In a statement on Tuesday, LinkedIn, which is owned by Microsoft, denied discriminating against certain employees.
“While we have agreed to settle this matter, we disagree with the government’s claim,” the statement said.
The settlement includes about $1.75 million in arrears and more than $50,000 in interest to be paid to the women, according to the mediation agreement.
As part of the settlement, LinkedIn also agreed to send the agency reports over the next three years as it reviews its compensation policies and makes salary adjustments, the Department of Labor said. The company agreed to organize an employee training program on “non-discrimination obligations.”
LinkedIn reported that its female employees made $0.999 for every dollar male employees made last year. The company said on its website that it employed more than 19,000 people worldwide.
“LinkedIn pays and has paid its employees fairly and fairly when comparing similar work,” the company’s statement said.
Under a 1965 executive order, federal contractors, including LinkedIn, must provide their employees with “equal opportunity” and must not discriminate based on sex, gender identity or other factors.
In general, women in the United States are paid less than men. In 2021, women working full-time earned about 83 percent of what their male counterparts earned, the U.S. Bureau of Labor Statistics reported in January.
In particular, tech companies have faced criticism for what critics say is the failure 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 allegations that it made hiring and compensation decisions that discriminated against female and Asian employees and job applicants.
Under an agreement with state authorities in Rhode Island, Pinterest pledged $50 million by November 2021 to implement reforms to resolve allegations of discrimination against women and people of color.
