Google Agrees to $28 Million Settlement in Lawsuit Over Alleged Racial Bias in Pay, Promotions

Google has consented to pay $28 million in a settlement to resolve a lawsuit alleging it gave preferential treatment to white and Asian employees regarding pay and career progression opportunities. The tech giant, while agreeing to the terms, continues to deny the allegations of discriminatory practices. "We reached a resolution, but continue to disagree with the allegations that we treated anyone differently, and remain committed to paying, hiring, and levelling all employees fairly," a Google spokesperson told BBC.

The lawsuit initiated by former employee Ana Cantu claimed employees from certain ethnic backgrounds, specifically Hispanic, Latinx, Indigenous, Native American, American Indian, Native Hawaiian, Pacific Islander, and Alaska Native, were unfairly compensated and blocked from climbing the corporate ladder compared to their white and Asian counterparts. According to CNN, Cantu was consistently overlooked for promotions and raises during her seven years at Google despite commendable performance.

Judge Charles Adams of the Santa Clara County Superior Court in California granted preliminary approval to the settlement, deeming it fair and reasonable. The settlement notably excludes Black employees, a point that arose during the latest rounds of negotiation, where Cantu's attorneys agreed not to include them in the proposed class at Google's request. As of now, after accounting for legal fees, penalties, and other costs, the net settlement proceeds will amount to about $20.4 million. A final settlement approval hearing has been set for September 11.

Google's spokesperson Courtenay Mencini reasserted the company's stance after the settlement announcement, telling CNN, "We continue to disagree with the allegations that we treated anyone differently and remain committed to paying, hiring and leveling all employees fairly." The settlement follows a broader tech industry trend where firms, under mounting pressure from various fronts, including the current US administration, are scaling back on their diversity, equity, and inclusion initiatives. This settlement with the tech behemoth came after Google joined others like Meta, Amazon, Pepsi, McDonald's, and Walmart in rolling back their DEI programs, according to a BBC report.

The class action, filed for at least 6,632 people, was initially fueled by a leaked internal document that allegedly revealed disparities in pay among employees performing similar work, flagging potential race and ethnicity-based compensation differences. The lawsuit cited the practice of basing starting pay and career level on previous salaries as perpetuating these disparities. "Suspected pay inequity is too easily concealed without this kind of collective action from employees," remarked Cathy Coble, one of the lawyers representing the claimants, emphasizing the importance of transparency and collective employee action in her statement to BBC.