LinkedIn must pay $1.8 million (backpay plus interest) for compensating 686 female employees “at a statistically significant lower rate” than their male counterparts between 2015 and 2017. LinkedIn also must track and report compensation policies and salary adjustments over the next three years and provide an employee training program. LinkedIn is only the latest tech company on the hook for such a payment, as Google and Pinterest settled similar cases in 2021.
Business Takeaway: While tech companies were, at least for a brief period, idealized as progressive work environments, many now labor under the stigma that they under-compensate and stymie career opportunities for women and people of color. What perceptions (accurate or inaccurate) relating to gender and race exist about your industry?