NEW YORK (TheStreet) -- LinkedIn (LNKD) agreed to pay $6 million in overtime and damages to 359 current and former employees after a Labor Department settlement found that the company violated the U.S. wage law, Reuters reports.
The Labor Department announced today that LinkedIn will pay more than $3.3 million in retroactive overtime wages and more than $2.5 million in damages to workers in California, Illinois, Nebraska and New York.
The investigation revealed that the social network for professionals failed to record and compensate workers for all hours worked, violating provisions of the Fair Labor Standards Act, Reuters said.
LinkedIn shares are up 0.98% to $204.49.
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TheStreet Ratings team rates LINKEDIN CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate LINKEDIN CORP (LNKD) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself."