Google Agrees to Pay $28 Million in Racial Bias Lawsuit Settlement But Denies Discrimination Claims
Google has agreed to pay $28 million in a racial bias lawsuit settlement alleging that the company systematically favoured white and Asian employees over workers from other ethnic backgrounds in terms of pay and career opportunities. While the tech giant denied the claims, it stated that it had “reached a resolution” in the case.
Google Agrees to Pay $28 Million in Racial Bias Lawsuit Settlement But Denies Discrimination Claims
Ana Cantu, a former Google employee, initially filed the lawsuit in 2021, accusing the company of discriminating against Hispanic, Latino, Native American, and other minority employees. According to the lawsuit, these employees were often hired at lower salary levels compared to their white and Asian counterparts, despite having similar qualifications and job responsibilities.
A key piece of evidence in the case was a leaked internal document, which allegedly revealed disparities in pay among employees from different racial and ethnic backgrounds. The document suggested that Google’s practice of determining salaries and job levels based on prior earnings reinforced historical inequities. This resulted in workers from marginalized backgrounds starting at lower pay scales and with fewer growth opportunities than their white and Asian colleagues.
The lawsuit, which became a class action case, covered more than 6,600 employees who worked at Google between February 15, 2018, and December 31, 2024.
Court Ruling and Settlement
Judge Charles Adams of the Santa Clara County Superior Court in California granted preliminary approval for the settlement. If finalized, Google will distribute the payout among the affected employees.
Cathy Coble, one of the attorneys representing the plaintiffs, commended the courage of employees who disclosed their pay information and shared it with the media. She stated that without such transparency, suspected pay inequalities might have remained hidden.
“Suspected pay inequity is too easily concealed without this kind of collective action from employees,” Coble said.
Despite agreeing to the settlement, Google maintained its stance that it had not engaged in discriminatory practices. A spokesperson for the company revealed, “We reached a resolution but continue to disagree with the allegations that we treated anyone differently. We remain committed to paying, hiring, and levelling all employees fairly.”
Shift Away from DEI Policies
The settlement comes amid a broader shift in corporate diversity, equity, and inclusion (DEI) initiatives in the United States. Earlier this year, Google joined several other major corporations, including Meta, Amazon, Pepsi, McDonald’s, and Walmart, in scaling back their DEI programs.
Political opposition has partly influenced the decline of DEI commitments. Former U.S. President Donald Trump and his allies have frequently criticized such initiatives. Following his return to the White House, Trump ordered government agencies and federal contractors to eliminate DEI programs, citing concerns over what he called “reverse discrimination.”
As companies navigate ongoing debates about workplace diversity, the outcome of Google’s settlement may have long-term implications for how large organizations approach issues of pay equity and racial bias in the future.
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