The U.S. Department of Labor and California-based LinkedIn Corp. have recently entered into a conciliation agreement to settle a pay discrimination controversy.
Allegations against the employment networking site operator mainly revolve around “systemic, gender-based pay discrimination” at its San Francisco and Sunnyvale facilities.
The controversy was discovered when a routine Office of Federal Contract Compliance Programs (OFCCP) compliance evaluation found that from March 1, 2015, through March 1, 2017, the tech company allegedly failed to comply with Executive Order 11246.
Specifically, under the said order, OFCCP alleged that the tech company did not provide equal pay to the affected female workers in positions in its engineering and marketing job family groups in San Francisco and its engineering and product job family groups in Sunnyvale.
According to the Department of Labor’s media release, OFCCP reviewed employment policies, practices, and records during the compliance review. The latter also interviewed management, HR, and non-management employees.
OFCCP evaluated and analyzed LinkedIn’s compensation system through regression and other analyses. Based upon its investigation, OFCCP found that the company paid the said female employees “at a statistically significant lower rate than their male counterparts.” It is important to note that “no allegation is made concerning any race or ethnicity discrimination as to compensation.”
In its defense, LinkedIn denied that...
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