Tech giant Google has agreed to pay $28 million (£21.5 million) to settle a lawsuit alleging that white and Asian employees were given better pay and career opportunities compared to workers from other ethnic backgrounds, a law firm representing the claimants confirmed.
The settlement follows a class-action lawsuit filed in 2021 by former Google employee Ana Cantu, who claimed that workers from Hispanic, Latino, Native American, and other backgrounds were consistently placed at lower salary levels and job positions than their white and Asian counterparts. The case, which was based on a leaked internal document, suggested that some employees reported receiving lower compensation despite performing similar work.
Preliminary Approval and Allegations
The lawsuit, covering at least 6,632 employees who worked at Google between February 15, 2018, and December 31, 2024, has received preliminary approval from Judge Charles Adams of the Santa Clara County Superior Court in California.
According to Cantu’s lawyers, Google’s alleged practice of determining starting pay and job levels based on prior salaries perpetuated historical racial and ethnic disparities. The leaked document played a key role in the lawsuit, as it reportedly highlighted compensation disparities based on employees’ ethnic backgrounds.
Cathy Coble, one of the attorneys representing the claimants, commended the courage of Google employees who shared their pay data. “Suspected pay inequity is too easily concealed without this kind of collective action from employees,” Coble stated.
Google Denies Wrongdoing
Despite reaching a settlement, Google has denied any wrongdoing. A company spokesperson stated, “We reached a resolution but continue to disagree with the allegations that we treated anyone differently. We remain committed to paying, hiring, and leveling all employees fairly.”
The settlement marks another chapter in the ongoing scrutiny of workplace discrimination and pay equity issues in the tech industry. Over the years, several major corporations have faced lawsuits regarding unequal pay and hiring practices.
Shifts in DEI Policies
The case also comes amid a broader shift in corporate policies regarding diversity, equity, and inclusion (DEI). Earlier this year, Google joined a growing list of U.S. companies rolling back DEI commitments in recruitment and workplace policies. Other major firms, including Meta, Amazon, Pepsi, McDonald’s, and Walmart, have also scaled back similar initiatives.
The trend follows increasing political opposition to DEI programs, particularly from U.S. President Donald Trump and his allies. Since returning to office, Trump has ordered government agencies and contractors to eliminate such initiatives, arguing that they promote division rather than inclusion.
With the settlement, Google aims to move past the legal dispute, but the lawsuit underscores ongoing concerns over workplace equity in Silicon Valley and beyond. Whether this agreement leads to significant changes in hiring and pay practices remains to be seen.
