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LinkedIn to pay nearly $6M in unpaid overtime wages and damages to 359 employees

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Re: LinkedIn to pay nearly $6M in unpaid overtime wages and damages to 359 employees

#11

prohibiting off-the-clock work to all nonexempt employees I presume this doesn't include computer professionals , which for some reason are exempt [1], as are sales staff on commission or, you know, farmworkers . Can someone explain why this insanity continues? The original source for that exemption seems to be [2], an act from 1990 To eliminate "substantial documentary evidence" requirement for minimum wage determin…

From that list, workers with disabilities are also exempt?

Re: LinkedIn to pay nearly $6M in unpaid overtime wages and damages to 359 employees

#12

I don't get it. So if I'm working overtime for my employer, a lot, I'm entitled to money? I get that my work after hours is essentially "free" labor. But I wasn't aware that there are actually laws that say salaried employees are entitled to more compensation when working after hours.

Some excerpts that help explain it: The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their regular hourly rates for hours worked beyond 40 per week. With few exceptions, to be exempt an employee must (a) be paid at least $23,600 per year ($455 per week), and (b) be paid on a salary basis, and also (c) perform e…

Yep, most HN readers are probably exempt due to the "computer employee" exemption:

> Computer Employees: Those who work in computer-related occupations, for example computer systems analysts, computer programmers and computer software engineers, are exempt as long as their work involves a combination of primary duties that include applying systems analysis techniques and procedures, consulting with users to determine specifications, and designing, developing, analyzing, creating, testing and modifying computer systems and programs.

Edit: State laws sometimes offer more protection, e.g. California, for non-high salary professionals.

Re: LinkedIn to pay nearly $6M in unpaid overtime wages and damages to 359 employees

#13

prohibiting off-the-clock work to all nonexempt employees I presume this doesn't include computer professionals , which for some reason are exempt [1], as are sales staff on commission or, you know, farmworkers . Can someone explain why this insanity continues? The original source for that exemption seems to be [2], an act from 1990 To eliminate "substantial documentary evidence" requirement for minimum wage determin…

That is insanity: http://www.dol.gov/whd/regs/compliance/fairpay/fs17e_compute...

The computer employee exemption does not include employees engaged in the manufacture or repair of computer hardware and related equipment. Employees whose work is highly dependent upon, or facilitated by, the use of computers and computer software programs (e.g., engineers, drafters and others skilled in computer-aided design software), but who are not primarily engaged in computer systems analysis and programming or other similarly skilled computer-related occupations identified in the primary duties test described above, are also not exempt under the computer employee exemption.

I worked at a major defense contractor as a mechanical engineer, and they worked really hard to make sure all of the engineers were classified as exempt. We filled out a questionnaire every year that was definitely crafted to proved that we were high level employees and therefore exempt. Yet they still paid OT anyway to avoid future liability, if you worked >45 hours a week, we got time and a half for every hour above 40. Considering most people worked ~50 hours a week, everyone collected OT every pay cycle. I actually funneled the OT off into a separate bank account for spending on vacation, it was that consistent.

Meanwhile OT for software engineers is seemingly non-existent for effectively the same job. I'd love to find out who got that loophole passed.

Re: LinkedIn to pay nearly $6M in unpaid overtime wages and damages to 359 employees

#14

prohibiting off-the-clock work to all nonexempt employees I presume this doesn't include computer professionals , which for some reason are exempt [1], as are sales staff on commission or, you know, farmworkers . Can someone explain why this insanity continues? The original source for that exemption seems to be [2], an act from 1990 To eliminate "substantial documentary evidence" requirement for minimum wage determin…

I found the next clause in that sentence - "and their managers" to be interesting. Wouldn't the managers be exempt?

Re: LinkedIn to pay nearly $6M in unpaid overtime wages and damages to 359 employees

#15
post #9

Earlier quoted context omitted.

Sorry to say but if you're working overtime for absolutely free you're not very smart person.

Right, because it's always that easy to just say "F U boss, I'm outa here!" Oh, wait, I have to feed my kid and pay the rent this month... oops.

Don't know about you, but if I have to work overtime it is because of bad planning.

Re: LinkedIn to pay nearly $6M in unpaid overtime wages and damages to 359 employees

#16

prohibiting off-the-clock work to all nonexempt employees I presume this doesn't include computer professionals , which for some reason are exempt [1], as are sales staff on commission or, you know, farmworkers . Can someone explain why this insanity continues? The original source for that exemption seems to be [2], an act from 1990 To eliminate "substantial documentary evidence" requirement for minimum wage determin…

From that list, workers with disabilities are also exempt?

Note that a bunch of the things on that list are exempt from that particular law because they are regulated specifically by a different law.

HR regulations, always fun!

Re: LinkedIn to pay nearly $6M in unpaid overtime wages and damages to 359 employees

#17

prohibiting off-the-clock work to all nonexempt employees I presume this doesn't include computer professionals , which for some reason are exempt [1], as are sales staff on commission or, you know, farmworkers . Can someone explain why this insanity continues? The original source for that exemption seems to be [2], an act from 1990 To eliminate "substantial documentary evidence" requirement for minimum wage determin…

From that list, workers with disabilities are also exempt?

That's an exemption from the federal minimum wage (the "MW" next to it). It seems to be designed to encourage employers to hire disabled workers they might not otherwise employ, though I don't know whether it has positive effects in practice. It does have some provisions aimed at reducing abuse, such as requiring employers to first come up with an objective test of disability relative to the job in question (e.g. this person performs at 80% of the capacity of a typical non-disabled worker), then to determine the prevailing wage for non-disabled workers in similar jobs, and then to pay them no less than e.g. 0.8 x prevailing_wage, which can as a special exception to the minimum wage drop below the usual minimum-wage level.

PDF: http://www.dol.gov/whd/regs/compliance/whdfs39.pdf

Re: LinkedIn to pay nearly $6M in unpaid overtime wages and damages to 359 employees

#18
post #8

prohibiting off-the-clock work to all nonexempt employees I presume this doesn't include computer professionals , which for some reason are exempt [1], as are sales staff on commission or, you know, farmworkers . Can someone explain why this insanity continues? The original source for that exemption seems to be [2], an act from 1990 To eliminate "substantial documentary evidence" requirement for minimum wage determin…

It persists partially because tech industry workers are especially susceptible to class confusion. That is, the startup culture stock option lottery deludes them into thinking they are a part of the ownership class rather than the working class. Thus, they allow basically all of the fruits of their labor to be stolen from them. That, and powerful lobbyists keep anything from changing.

Well put.

Steinbeck's "temporarily embarrassed millionaires" quote also comes to mind here. It has far more broad application than merely as a suggested explanation for the failure of socialism to take root in America. I find it is a very useful shorthand to describe a great many interactions between labor and ownership in this country, whatever the industry.

The tech industry is especially bad in that regard. It's not just the startup culture; it's more general than that. Many programmers have serious ego issues (as in, big egos and unjustifiable arrogance) and, in a somewhat amusing and baffling way, believe very strongly in the notion that the software industry is a meritocracy.

Re: LinkedIn to pay nearly $6M in unpaid overtime wages and damages to 359 employees

#19
post #2

> This company has shown a great deal of integrity by fully cooperating with investigators and stepping up to the plate without hesitation to help make workers whole ... We are particularly pleased that LinkedIn also has committed to take positive and practical steps towards securing future compliance. I'm surprised they're getting praised so much for complying. It's not like they had a choice. Instead of commending…

This looks to me like a cultural problem, not only in the IT sector but in all sectors where high performance is a measurably inductor to profit. I hope this case sets a precedent and will lead to employees whistle-blowing organisations where overtime goes untracked and unpaid.

It's ridiculous that employees would work their guts out for companies that they don't hold significant shares in without receiving even normal hourly pay.

Re: LinkedIn to pay nearly $6M in unpaid overtime wages and damages to 359 employees

#20

I don't get it. So if I'm working overtime for my employer, a lot, I'm entitled to money? I get that my work after hours is essentially "free" labor. But I wasn't aware that there are actually laws that say salaried employees are entitled to more compensation when working after hours.

Wait, if you work overtime in the U.S. you do not get compensated for it?
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