Google to Pay $2.59 Million in Discrimination Settlement

Google Reaches Settlement Over Discrimination Allegations

A financial agreement has been reached between Google and the U.S. Department of Labor, totaling $2.59 million. This settlement will be distributed among over 5,500 current employees and former applicants.

The agreement addresses allegations of systemic discrimination concerning both compensation practices and the hiring process. Google has also committed to allocating $250,000 annually for the next five years.

Financial Details of the Settlement

This ongoing allocation is intended to address any potential adjustments needed to ensure pay equity. The total financial commitment from Google amounts to $3.8 million, a relatively small sum considering Alphabet’s substantial market capitalization of $1.28 trillion.

Investigations by the DOL’s Office of Federal Contract Compliance Programs (OFCCP) revealed disparities in pay affecting female software engineers.

Findings of the OFCCP Investigation

These discrepancies were identified at Google offices located in Mountain View, California, as well as Seattle and Kirkland, Washington. The OFCCP also discovered that hiring rates were unequal, negatively impacting both female and Asian applicants seeking engineering positions.

Specifically, these hiring disparities were observed at Google locations in San Francisco, Sunnyvale, and Kirkland. The OFCCP’s evaluation period spanned from September 1, 2014, to August 31, 2017.

Distribution of Back Pay and Interest

As part of the settlement, $1.35 million will be paid in back pay and interest to 2,565 female software engineers. This equates to $527.50 per affected employee.

An additional $1.25 million will be distributed as back pay and interest to 1,757 women and 1,219 Asian applicants who were not hired for software engineering roles. Each individual will receive approximately $414.

Future Pay Equity Adjustments

Furthermore, Google will reserve $1.25 million to be used over the next five years for pay-equity adjustments. This will apply to U.S. engineers working at Google’s offices in Mountain View, Kirkland, Seattle, and New York.

Google’s Statement

A Google spokesperson stated the company believes compensation should be based on work performed, not personal characteristics. They emphasized their significant investment in ensuring fair and unbiased hiring and compensation processes.

The spokesperson also noted that Google has conducted annual internal pay equity analyses for the past eight years to identify and rectify any discrepancies. They expressed satisfaction with resolving the matter related to the 2014-2017 audits and reaffirmed their commitment to diversity, equity, and employee support.

Statement from the Department of Labor

Jane Suhr, Regional Director of the Office of Federal Contract Compliance Programs, acknowledged Google’s willingness to engage in settlement discussions and reach a swift resolution.

She highlighted the technology industry’s importance as a major employer in the region and emphasized the Department of Labor’s dedication to enforcing equal opportunity laws. This commitment ensures non-discrimination and equity within the workforce, regardless of company size or complexity.