Google has agreed to pay $28 million (£21.5 million) to settle a lawsuit. The case claimed that the company paid white and Asian employees more than workers from other ethnic backgrounds. The law firm representing the claimants confirmed the settlement.
A Lawsuit Over Unequal Pay
Former Google employee Ana Cantu filed the lawsuit in 2021. She argued that Hispanic, Latino, Native American, and other minority employees started with lower salaries and job levels compared to their white and Asian colleagues. The case claimed that these disparities led to long-term wage gaps.
A judge in California’s Santa Clara County Superior Court gave preliminary approval for the settlement. This means that the court has agreed to the proposed terms, but final approval is still pending.
Google has denied all wrongdoing. However, the company said it reached a settlement to avoid a long legal battle.
Leaked Documents Reveal Alleged Pay Gaps
The lawsuit was based on internal Google data that was leaked to the public. This data allegedly showed that employees from certain ethnic groups were paid less for the same work.
Cantu’s lawyers argued that Google’s hiring and salary practices made these gaps worse. They said that using previous pay as a factor in setting salaries continued existing racial and ethnic wage differences.
The class action lawsuit includes at least 6,632 Google employees. These workers were employed between February 15, 2018, and December 31, 2024, according to Reuters.
Attorney Cathy Coble, who represented the employees, praised those who came forward. She said, “Pay inequality is often hidden. Without collective action, it is hard to prove.”
Google Responds to the Settlement
Google insists it treats employees fairly. A company spokesperson said, “We reached a resolution but reject claims that we discriminated against anyone. We are committed to fair pay and hiring for all employees.”
Despite this statement, the lawsuit is part of a larger trend. Many companies have faced legal challenges over their pay and hiring practices in recent years.
Companies Are Changing DEI Policies
Google is one of several major corporations making changes to their diversity, equity, and inclusion (DEI) policies. Earlier this year, Google reduced its DEI programs, joining other companies like Meta, Amazon, Pepsi, McDonald’s, and Walmart.
Former U.S. President Donald Trump and his allies have been vocal critics of DEI policies. Since returning to office, Trump has ordered government agencies and contractors to eliminate these programs. This has led some private companies to rethink their own DEI efforts.
The court will decide whether to grant final approval for the settlement. If approved, affected employees will receive compensation. The case highlights ongoing debates about fair pay and workplace equality.