Google agreed to pay more than $3.8 million to resolve allegations of systemic compensation and hiring discrimination at the search giant’s California and Washington state facilities, the US Department of Labor announced Monday. The amount includes payments to more than 5,500 current employees and job applicants.
The department’s Office of Federal Contract Compliance Programs identified pay disparities affecting female employees in software engineering positions at Google’s facilities in Mountain View, California, as well as in Seattle and Kirkland, Washington.
In addition, the agency identified hiring rate differences that disadvantaged female and Asian applicants for software engineering jobs at Google’s locations in San Francisco; Sunnyvale, California; and Kirkland sites.
“The US Department of Labor acknowledges Google’s willingness to engage in settlement discussions and reach an early resolution,” said Jane Suhr, regional director for the Office of Federal Contract Compliance Programs in San Francisco. “The technology industry continues to be one of the region’s largest and fastest-growing employers. Regardless of how complex or the size of the workforce, we remain committed to enforcing equal opportunity laws to ensure non-discrimination and equity in the workforce.”
The announcement comes not long after efforts were announced to unionize Google’s workforce, including temps and contractors.
In a statement to The Verge, Google responded to the Department of Labor’s announcement, saying:
“We believe everyone should be paid based upon the work they do, not who they are, and invest heavily to make our hiring and compensation processes fair and unbiased. For the past eight years, we have run annual internal pay equity analysis to identify and address any discrepancies. We’re pleased to have resolved this matter related to allegations from the 2014-2017 audits and remain committed to diversity and equity and to supporting our people in a way that allows them to do their best work.”
As part of the $3.8 million, Google will provide $1,353,052 in back pay and interest to 2,565 female employees in engineering positions subject to pay discrimination, according to the department. Google will also provide $1,232,000 in back pay and interest to 1,757 female and 1,219 Asian applicants not hired for software engineering positions.
In addition, Google will allocate a cash reserve of least $1,250,000 in pay-equity adjustments for the next five years for US employees in engineering positions at Google’s Mountain View, Kirkland, Seattle and New York establishments; these locations house approximately 50% of Google’s engineering employees nationwide.
Google has also provided job opportunities to 51 female and 17 Asian applicants for software engineering positions under the terms of its agreement with the Department of Labor.
