Google has agreed to pay $28 million (£21.5 million) to settle a lawsuit that accused the tech giant of favoring white and Asian employees over workers from other ethnic backgrounds in pay and career advancement, a law firm representing the claimants has announced.
The case, filed in 2021 by former Google employee Ana Cantu, alleged that Hispanic, Latino, Native American, and other minority employees were systematically hired at lower salary levels than their white and Asian colleagues. The lawsuit claimed this disparity was reinforced by Google’s practice of basing starting pay and job levels on prior salaries, a policy that allegedly perpetuated historical racial and ethnic wage gaps.
Google confirmed it had “reached a resolution” in the case but denied the allegations of discrimination.
“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 the BBC.
The settlement received preliminary approval from Judge Charles Adams of the Santa Clara County Superior Court in California. It covers at least 6,632 current and former Google employees who worked at the company between February 15, 2018, and December 31, 2024, according to Reuters.
Ms. Cantu’s lawsuit was backed by a leaked internal document that allegedly revealed significant pay disparities for employees of different ethnic backgrounds performing similar work. The data was reportedly shared internally by employees who suspected systemic inequities.
“Suspected pay inequity is too easily concealed without this kind of collective action from employees,” said Cathy Coble, one of the lawyers representing the claimants. She praised the “bravery of both the diverse and ally Googlers who self-reported their pay and leaked that data to the media.”
Despite agreeing to the multimillion-dollar settlement, Google has not admitted any wrongdoing.
The settlement comes at a time when major U.S. corporations, including Google, are scaling back their commitments to diversity, equity, and inclusion (DEI) initiatives.
Earlier this year, Google joined companies such as Meta, Amazon, Pepsi, McDonald’s, and Walmart in rolling back DEI programs, amid increasing political pressure from conservative lawmakers.
U.S. President Donald Trump and his allies have been vocal critics of DEI policies, arguing that they lead to unfair advantages based on race and ethnicity. Since returning to office, Trump has ordered federal agencies and government contractors to eliminate DEI initiatives, further intensifying the debate over corporate diversity programs.
While Google’s settlement closes one chapter in the ongoing conversation about workplace equity in Silicon Valley, it is unlikely to end broader scrutiny of hiring and pay practices in the tech industry.
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