Google has agreed to pay $28 million to settle a class-action lawsuit alleging that it favored white and Asian employees by paying them higher wages and placing them on advanced career tracks over other racial groups.
Settlement Details
The agreement, which received preliminary approval last week from Judge Charles Adams of the Santa Clara County Superior Court, will benefit a class of at least 6,632 employees who worked at Google in California between February 15, 2018, and December 31, 2024. The judge described the settlement as fair, reasonable, and a positive outcome for the affected employees.
Despite agreeing to the settlement, Google denies any wrongdoing. Company spokesperson Courtenay Mencini reaffirmed Google’s commitment to fair pay, hiring, and career advancement, stating:
“We continue to disagree with the allegations that we treated anyone differently and remain committed to paying, hiring, and leveling all employees fairly.”
Claims Against Google
The lawsuit was led by Ana Cantu, a former Google employee who identifies as Mexican and racially Indigenous. Cantu filed the suit on behalf of Hispanic, Latinx, Indigenous, Native American, American Indian, Native Hawaiian, Pacific Islander, and Alaska Native employees.
According to the lawsuit:
- Cantu excelled in her role over seven years in Google’s People Operations and Cloud departments but was denied promotions and salary increases.
- White and Asian employees were allegedly placed in higher job levels for performing the same work.
- Employees who raised concerns reportedly faced withheld raises and promotions.
- The lawsuit argued that Google’s actions violated the California Equal Pay Act.
Cantu left Google in September 2021.
Exclusion of Black Employees from the Class
As part of the settlement, Black employees were excluded from the class after negotiations between Cantu’s lawyers and Google. The decision to remove Black employees from the class was a key factor in finalizing the settlement agreement.
Financial Breakdown of the Settlement
Of the $28 million settlement, net proceeds will total $20.4 million after deductions, which include:
- $7 million for legal fees and penalties related to California’s Private Attorneys General Act.
- Other administrative costs related to the case.
A final approval hearing for the settlement is scheduled for September 11.
Next Steps
As the court reviews the settlement for final approval, impacted Google employees in California will have the opportunity to claim their share of the settlement funds. Meanwhile, Google continues to defend its employment practices, despite agreeing to resolve the case.
Cantu’s legal team has yet to comment on the settlement as of Tuesday.
This case underscores the ongoing challenges surrounding pay equity and career advancement in major tech companies, raising broader questions about diversity, inclusion, and corporate accountability in Silicon Valley.
Source: CNN – Google agrees to pay $28 million to settle claims it favored white and Asian workers
