LinkedIn Pays; HiringSolved Plays

HiringSolved explosionWhat’s better than a hosted networking party at a recruiting conference? How about 20 pounds of Tannerite and a small arsenal of weapons, including a semi-automatic AR-15?

I’m practically giddy with appreciation for LinkedIn’s Davy and Goliath battle with startup HiringSolved. Not familiar with it? Here’s the short version: HiringSolved scraped; LinkedIn sued; HiringSolved surrendered. Now, as part of the settlement, the talent profiling aggregator has to destroy the data it collected from LI.

HiringSolved could have simply erased and deleted all the data. It is digital.

But what fun would that be when you can dump it onto 40 or so disks and bring them and a server out to the Arizona desert and shoot ’em up and blow ’em up? Which is just what HiringSolved is doing today and having a lot of fun at LI’s expense.

At least that expense is one of those intangibles. More tangible is the nearly $6 million LI had to cough up to compensate 359 hourly sales workers for their unpaid overtime.

The Department of Labor dinged the company $3,346,195 in back pay for workers in California, Illinois, Nebraska, and New York. LI also had to pay $2,509,646 in damages and agree to do training, keep better track of hours worked, and meet to remind the managers of those workers who got shorted on their OT that they can’t let that happen again.

Being as how the company vacuumed up $1 billion in sales in half a year, the $6 million is chump change. But the publicity! Now that had to hurt a company that regularly dispenses advice about all sorts of things recruiting and job related, including FLSA compliance.

CNN Money began its article about the DOL settlement this way: “Here’s a skill LinkedIn won’t be recommended for any time soon: paying its workers overtime.”

ValleyWag, Silicon Valley’s equivalent of TMZ, headlined its article, “LinkedIn Caught Withholding Overtime Wages From 359 Employees.”

John Zappe is the editor of TLNT.com and a contributing editor of ERE.net. John was a newspaper reporter and editor until his geek gene lead him to launch his first website in 1994. He developed and managed online newspaper employment sites and sold advertising services to recruiters and employers. Before joining ERE Media in 2006, John was a senior consultant and analyst with Advanced Interactive Media and previously was Vice President of Digital Media for the Los Angeles Newspaper Group.

Besides writing for ERE, John consults with staffing firms and employment agencies, providing content and managing their social media programs. He also works with organizations and businesses to assist with audience development and marketing. In his spare time  he can be found hiking in the California mountains or competing in canine agility and obedience competitions.

You can contact him here.

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