Google to settle racial bias claims with $28m payment
Google has agreed to pay $28 million to settle a lawsuit alleging racial bias in its pay and career advancement practices.
The settlement, which has received preliminary approval, comes after claims that the tech giant provided better pay and career opportunities to white and Asian employees compared to their Hispanic, Latino, Native American, and other minority counterparts.
The lawsuit, filed in 2021 by former Google employee Ana Cantu, argued that workers from certain ethnic backgrounds were given lower starting salaries and job levels than their white and Asian colleagues, despite performing similar work.
The case was built on a leaked internal document that allegedly showed discrepancies in compensation for employees of different ethnicities. Cantu's lawyers contended that this practice reinforced longstanding racial and ethnic disparities in pay and career progression at the company.
The settlement has been given preliminary approval by Judge Charles Adams of the Santa Clara County Superior Court in California. According to Reuters, the class-action lawsuit covers at least 6,632 individuals who worked at Google between February 15, 2018, and December 31, 2024.
Google, while confirming the settlement, denied the allegations of discrimination. A spokesperson for the company said, "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."
The case gained momentum thanks to the courage of employees who reported their pay disparities and leaked the data to the media. Cathy Coble, one of the lawyers representing the claimants, praised these employees, calling them "brave" for self-reporting their pay and taking action to expose the issue. She added, 'Suspected pay inequity is too easily concealed without this kind of collective action from employees.'
In response to the settlement, Coble expressed hope that it would shine a light on practices that are often difficult to uncover without internal leaks and whistleblowing. 'We hope this settlement will contribute to greater transparency and fairness within the tech industry,' she said.
Google's commitment to resolving the issue is part of the company's ongoing efforts to address claims of inequality in the workplace. However, the company has also joined a growing list of US corporations that are scaling back or abandoning diversity, equity, and inclusion (DEI) initiatives.
Companies such as Meta, Amazon, and McDonald's have followed similar paths, reducing their DEI programmes amid increasing political pressure.
The trend coincides with broader political movements, particularly under the administration of former President Donald Trump, who has frequently criticised diversity-focused policies. Since his return to the White House, Trump has ordered federal agencies and contractors to eliminate DEI-related programmes.
The $28 million settlement represents a significant step in resolving the claims of racial bias at Google, though the company continues to deny any wrongdoing.
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