Google Settles Class-Action Lawsuit for $118 Million

Issue 127

Google has agreed to pay $118 million in a class-action lawsuit alleging that Google underpays women which is a direct violation of California state law.

The case began in 2017 when three women brought the issue to the attention of the U.S. Department of Labor. The department ended up suing Google stating that there were compensation disparities towards women across the entire workforce. The case was closed in 2021 with Google paying $3.8 million to 5,500 employees and job applicants.

The women then turned the situation into a class-action lawsuit in which the women stated that Google has undertaken two practices that are “systemic.” The first is that Google pays women less for doing the same job, and the second is that Google gives women lower-level jobs despite candidates having similar work experience and education.

Google has agreed to have third parties analyze both their hiring practices and their pay equity studies for three years following the allegations. The three women who initially brought these allegations to the attention of the U.S. Department of Labor are pleased with the actions Google is taking to prevent any further wrongdoing and have high hopes that Google can act as an example for equality among women and men throughout the tech industry.

Google, while admitting to no wrongdoing, has stated that they strongly believe in equality for women and are happy to reach an agreement and move forward with a continued rigorous pay equity analysis to ensure that compensation is fair.

Source: Financial Times