Google pays $ 118 million to decide the gender discrimination lawsuit

Google will pay $ 118 million to settle a gender discrimination lawsuit involving around 15,500 women (via Bloomberg). As mentioned in the settlement’s press release, Google is also required to have an independent work economist evaluate employment practices and payroll liquidity studies.

The lawsuit first surfaced in 2017 after three women filed a lawsuit accusing the company of underpaying female workers in violation of California’s equal pay law, citing a pay gap of about $ 17,000. The complaint also claims that Google locks women into lower career tracks, leading to lower salaries and lower bonuses compared to its male counterparts. The plaintiffs won status as a class action last year.

Google’s treatment of workers has been the target of scrutiny more than once. Last year, Google agreed to pay $ 2.5 million to settle a lawsuit alleging that the company underpaid female engineers and overlooked Asian job seekers. The California Department of Fair Employment and Housing (DFEH) is also investigating the company regarding complaints of potential harassment and discrimination against black female employees.

“As a woman who has spent her entire career in the technology industry, I am optimistic that the actions Google has agreed to take as part of this settlement will ensure more justice for women,” said Holly Pease, a plaintiff in the case. a statement. “Since its inception, Google has led the technology industry. They also have an opportunity to lead the prosecution to ensure the inclusion and equality of women in technology. “

The terms of the settlement must still be approved by a judge in a hearing that will take place on 21 June. “Although we have great faith in the fairness of our policies and practices, after almost five years of litigation, both sides agreed that the resolution of the case, without any admission or finding, was in everyone’s interest, and we are very pleased to now this agreement, “Google said in a statement The Verge. The company added that it is “absolutely obliged to pay, hire and equalize all employees fairly and equally,” and that it makes “adjustments” if it finds a pay gap between male and female employees.

A number of similar lawsuits targeting pay gaps have emerged over the past decade, with class action lawsuits against Gender Discrimination against Microsoft and Twitter failing. Oracle is also facing a class action lawsuit alleging different pay, but according to Bloomberg Law, the group of women suing the company is likely to lose status as a class action after a judge said a class of 3,000 employees and 125 job classifications would be “unmanageable to go to court.” Other technology companies, such as Apple and Riot Games, have also faced accusations of pay inequality.

Update June 12 at 12:39 ET: Updated to add a statement from Google.