Google has agreed to pay $28 million to resolve allegations that it provided white and Asian employees with superior compensation and advancement opportunities in comparison to minority employees.
A law firm representing the plaintiffs has announced that this was to resolve a lawsuit that accused the tech behemoth of favoring white and Asian employees over workers from other ethnic backgrounds in salary and career advancement.
In 2021, former Google employee Ana Cantu filed a lawsuit alleging that Hispanic, Latino, Native American, and other minority employees were systemically employed at lower salary levels than their white and Asian colleagues.
The lawsuit alleged that Google’s policy of basing starting pay and position levels on prior salaries, which allegedly perpetuated historical racial and ethnic wage discrepancies, reinforcing this disparity.
The allegations of discrimination were denied by Google, which verified that it had “reached a resolution” in the case.
A Google spokesperson informed the BBC, “We have reached a resolution, but we remain steadfast in our commitment to treating all employees fairly and paying them fairly. We refute any allegations that we discriminated against anyone.”
Judge Charles Adams of the Santa Clara County Superior Court in California has granted preliminary sanction to the settlement.
According to Reuters, it encompasses a minimum of 6,632 current and former Google personnel who were employed at the company between February 15, 2018, and December 31, 2024.
Ms. Cantu’s lawsuit was allegedly supported by a smuggled internal document that purportedly disclosed substantial pay disparities among employees of varying ethnic backgrounds who were conducting comparable tasks.
Employees who suspected systemic inequities reportedly shared the data internally.
Cathy Coble, one of the attorneys representing the petitioners, stated, “Suspected pay inequity is too easily concealed without this kind of collective action from employees.”
She commended the “bravery of both the diverse and ally Googlers who self-reported their pay and leaked that data to the media.”
Google has not acknowledged any malfeasance, despite consenting to the multimillion-dollar settlement.
The settlement is being announced at a time when numerous major U.S. corporations, such as Google, are reducing their dedication to diversity, equity, and inclusion (DEI) initiatives.
In response to the mounting political pressure from conservative legislators, Google, Amazon, Pepsi, McDonald’s, and Walmart became part of a group that reversed their DEI programs earlier this year.
DEI policies have been the subject of vocal criticism from U.S. President Donald Trump and his allies, who contend that they result in unjust advantages based on race and ethnicity.
Trump has ordered federal agencies and government contractors to eliminate DEI initiatives since his return to office, which has further fueled the debate regarding corporate diversity programs.
Although Google’s settlement concludes one chapter in the ongoing discourse regarding workplace equity in Silicon Valley, it is improbable that it will result in a cessation of more extensive examination of the hiring and compensation practices of the technology sector.
