The tech giant Google has agreed to pay $118 million to over 15,500 employees for the settlement of a longstanding lawsuit over claims of gender discrimination.
The lawsuit was launched in 2017 by three female Google employees, who accused Google of breaking Californian laws on gender discrimination, such as the state’s Equal Pay Act.
The plaintiffs argued that women employed at Google earn approximately $16,794 less per year than their male counterparts.
A California judge granted the lawsuit class-action status last year, allowing the plaintiffs to represent thousands of Google employees. Some gender discrimination lawsuits against other Big Tech firms, like those against software maker Oracle, have struggled to achieve class-action status.
On June 6, the company agreed to pay $100 million to Illinois residents to settle a class-action lawsuit from users of the Google Photos app. The company was accused of not informing users it was collecting biometric data, like facial geometry, in violation of state law.
The settlement comes for the pay equity in the company. The settlement covers 236 job titles for female workers in the state of California since September 14, 2013. The company was accused of paying female staff $17,000 a year less than men for the same work.
The employees worked across several levels and divisions, with the average compensation amounting to about $7,600. The agreement follows a lawsuit filed in September 2017 by former employees Kelly Ellis, Holly Pease, Kelli Wisuri, and Heidi Lamar.
In addition to the money – which will be awarded to the women according to “an objective formula” – the company has agreed to bring in third-party experts to improve its gender pay balance.
Among the other details in the proposed settlement – which will need to be approved in court -, Google will bring in an independent expert specializing in industrial organization to analyze its hiring practices and pay equity.
Holly Pearse, who worked for Google for more than a decade before suing the company said, “As a woman who’s spent her entire career in the tech industry, I’m optimistic that the actions Google has agreed to take as part of this settlement will ensure more equity for women.
“Google, since its founding, has led the tech industry. They also have an opportunity to lead the charge to ensure inclusion and equity for women in tech,” added Ms. Pearse.
In February 2021, Google paid $2.5 million to settle a lawsuit from the U.S. Department of Labor alleging the company disadvantaged female and Asian applicants.
The company is also reportedly under investigation from California’s Department of Fair Employment and Housing regarding harassment against Black female employees.
