Google Settles $28 Million Racial Bias Lawsuit Over Pay Disparities

Google has settled a class-action lawsuit alleging systemic racial bias in pay and career advancement practices, agreeing to pay $28 million to resolve claims that white and Asian employees received preferential treatment over Hispanic, Latino, Native American, and other minority workers. The settlement, preliminarily approved by a California court, covers over 6,600 employees who worked at Google between February 2018 and December 2024.

Key Details of the Settlement

Allegations and Evidence

The lawsuit, filed in 2021 by former Google employee Ana Cantu, claimed the company perpetuated racial and ethnic disparities through:

• Lower Starting Salaries: Minority employees were allegedly assigned lower job levels and salaries compared to white and Asian colleagues performing similar work.
• Career Advancement Barriers: Cantu and others asserted that promotions and raises were withheld from minority workers, while white and Asian employees advanced more rapidly.
• Leaked Internal Documents: A confidential Google document reportedly revealed pay discrepancies across ethnic groups, reinforcing the lawsuit’s claims.

Legal Outcome

• Class Size: The settlement applies to 6,632 current and former Google employees in California.
• Net Payout: After deducting $7 million for legal fees and penalties under California’s Private Attorneys General Act, $20.4 million will be distributed to affected workers.
• Court Approval: Judge Charles Adams of Santa Clara County Superior Court deemed the agreement “fair, reasonable, and a good result for the class”.

Google’s Response and Denial of Wrongdoing

While confirming the settlement, Google denied all allegations of discrimination. A spokesperson stated:

“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 company emphasized its commitment to equitable practices but avoided admitting liability.

Broader Context: Workplace Discrimination in Tech

Pattern of Allegations

This case follows other high-profile discrimination lawsuits against Google, including:

• Gender Discrimination: In 2023, a jury ordered Google to pay $1.15 million to a female executive who alleged gender-based pay disparities and retaliation.
• Industry-Wide Trends: Tech companies like Zendesk have also faced lawsuits over gender bias in pay and promotions.

Impact on Diversity Initiatives

The settlement comes amid a backdrop of political pressure on U.S. companies to scale back diversity programs. Critics argue such lawsuits highlight systemic inequities, while proponents of diversity efforts warn against backlash that could undermine progress.

Conclusion

Google’s $28 million settlement underscores ongoing challenges in addressing racial and ethnic disparities in tech workplaces. While the company maintains its commitment to fairness, the agreement provides financial relief to affected employees. It serves as a cautionary tale for employers navigating pay equity and career advancement practices.