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 than workers from other ethnic backgrounds. The settlement follows a legal battle that began in 2021, when former Google employee Ana Cantu filed a class-action lawsuit.
The lawsuit claimed that workers from Hispanic, Latino, Native American, and other ethnic backgrounds were offered lower starting salaries and job levels compared to their white and Asian counterparts. The case was supported by a leaked internal document suggesting that employees from certain ethnic groups reported receiving lower compensation for similar work.
The class action involved at least 6,632 employees who worked at Google between February 15, 2018, and December 31, 2024. According to the claimants’ legal team, the practice of basing starting pay and job levels on previous salaries reinforced historical race- and ethnicity-based disparities in the company.
Preliminary Approval and Google’s Response
The settlement has been granted preliminary approval by Judge Charles Adams of the Santa Clara County Superior Court in California. Despite this, Google maintains its stance that it did not engage in any discriminatory practices.
“We reached a resolution, but continue to disagree with the allegations that we treated anyone differently,” said a Google spokesperson. “We remain committed to paying, hiring, and leveling all employees fairly.”
This lawsuit and the settlement come amid increasing scrutiny of diversity, equity, and inclusion (DEI) initiatives in the workplace. Earlier this year, Google joined other major U.S. companies, including Meta, Amazon, and Walmart, in scaling back its DEI programs. These moves align with broader political shifts, particularly under President Donald Trump’s administration, which has criticized DEI initiatives.
Author’s Opinion
While Google’s settlement of this lawsuit might suggest a resolution, it’s important to recognize that this is just one example of larger systemic issues in corporate America. Scaling back DEI initiatives, as some companies are doing, risks undermining the progress made in creating more equitable workplaces. True change requires a commitment not only to policy changes but also to lasting cultural shifts within organizations. This lawsuit highlights the need for tech giants to be more transparent and proactive about addressing racial disparities and providing fair opportunities for all employees.
Featured image credit: Freepik
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