Google Agrees to $28M Settlement Regarding Alleged Pay Discrimination Against Minority Workers

Google has agreed to pay $28 million to resolve claims that it paid and promoted white and Asian employees more than minority employees.

According to a law firm representing the claimants, Google has agreed to pay $28 million (£21.5 million) to resolve a lawsuit alleging that the internet giant discriminated against workers from various ethnic backgrounds in terms of career advancement and compensation.

Ana Cantu, a former employee of Google, filed the lawsuit in 2021, alleging that Hispanic, Latino, Native American, and other minority employees were routinely employed at lower pay levels than their Asian and white counterparts. According to the lawsuit, Google’s practice of basing starting pay and job levels on previous salary, which allegedly maintained historical racial and ethnic wage discrepancies, contributed to this imbalance.

Although Google dismissed the claims of discrimination, it acknowledged that it had “reached a resolution” in the matter.

The BBC was informed by a Google representative that “we reached a resolution but continue to disagree with the allegations that we treated anyone differently, and remain committed to paying, hiring, and leveling all employees fairly.”

Judge Charles Adams of the Santa Clara County Superior Court in California granted preliminary approval for the settlement. According to Reuters, it includes at least 6,632 current and former Google workers who were employed by the corporation between February 15, 2018, to December 31, 2024.

A leaked internal document that purportedly showed notable wage differences for workers of different ethnic backgrounds doing identical work supported Ms. Cantu’s case. Employees who suspected widespread injustices reportedly shared the data internally.

“Without this kind of collective action from employees, suspected pay inequity is too easily concealed,” stated Cathy Coble, one of the claimants’ attorneys. The “bravery of both the diverse and ally Googlers who self-reported their pay and leaked that data to the media” was commended by her.

Google has accepted the multimillion-dollar payout but has not acknowledged any misconduct.

At the time of the settlement, Google and other large U.S. firms are reducing their commitments to diversity, equality, and inclusion (DEI) programs.

In response to growing political pressure from conservative lawmakers, Google earlier this year joined Meta, Amazon, Pepsi, McDonald’s, and Walmart in discontinuing their DEI projects.

Donald Trump and his supporters have been outspoken in their criticism of DEI policies, claiming that they result in unjust benefits based on race and ethnicity. The controversy surrounding business diversity programs has gotten even more heated after Trump ordered federal agencies and government contractors to discontinue DEI initiatives after taking office again.

Although Google’s settlement puts an end to one phase of the ongoing discussion about workplace fairness in Silicon Valley, it is unlikely to stop more extensive investigation of the tech industry’s recruiting and compensation practices.