Google agreed to pay $ 2.5 million to more than 5,500 employees and job seekers affected by alleged systematic pay and hiring discrimination. The United States Department of Labor found that software engineers were underpaid. He also identified “differences in hiring rates that hurt female and Asian candidates” for engineering positions at Google.
As part of the deal, Google will hand over $ 1,353,052 in late payments and interest to 2,565 female engineers. It will also pay $ 1,232,000 in arrears and interest to 1,757 engineering candidates and 1,219 Asian engineering candidates for “non-contracted engineering positions”.
The alleged disparities affected employees at Google’s offices in Mountain View, Seattle, and Kirkland, Washington.
Google will also set aside $ 1,250,000 for equity adjustments, totaling $ 3.8 million, to address this issue. That $ 1.25 million goes to engineers in Mountain View, Seattle, Kirkland and New York, which are home to 50% of Google’s engineering team in the U.S., according to the Department of Labor.
The news comes after years of conflict between Google employees and management. In 2018, more than 20,000 employees left work to protest the company’s treatment of allegations of sexual harassment. Earlier this year, about 230 employees and contractors formed a minority union. The organization, Alphabet Workers Union, now has more than 800 members. AWU specifically wanted contractors to be part of the union, as they are usually left out of the high salaries and benefits of full time employees.
“Wage discrimination remains a systemic problem,” said Jenny R. Yang, director of the office of federal contract compliance programs. “Employers must conduct regular pay equity audits to ensure that their pay systems promote equal opportunities.”
In an emailed statement to The Verge, a Google spokesman said: “We believe that everyone should be paid based on the work they do, not who they are, and invest heavily to make our hiring and compensation processes fair and impartial. For the past eight years, we have conducted annual internal wage equity analyzes to identify and resolve any discrepancies. We are pleased to have resolved this issue related to the 2014-2017 audit allegations and to remain committed to diversity and equity and to support our people in a way that allows them to do their best work. ”