Google agrees to pay $118m in gender discrimination lawsuit

Google has also agreed to invite an independent third-party expert to analyse company’s leveling-at-hire practices

Lawsuit first emerged in 2017 when three women accused tech giant of underpaying its female workers in violation of California’s Equal Pay Act (AP)

Google has agreed to pay $118m (£96.5m)to settle a landmark class-action lawsuit that alleges the tech giant systematically discriminated against its female employees in pay and promotions.

The sum covers about 15,500 female employees in 236 job titles (“covered positions”) in California since 14 September 2013, the settlement’s press release noted.

Google has also agreed to invite an independent third-party expert to analyse the company’s leveling-at-hire practices and for an independent labor economist to review its pay equity studies.

This post-settlement work will be supervised by an external settlement monitor over the next three years.

The lawsuit first emerged in 2017 when three women filed a complaint accusing the tech giant of underpaying its female workers in violation of California’s Equal Pay Act.

It alleged that women working at Google faced diminished career prospects compared to their male counterparts and a wage gap of around $17,000.

The lawsuit alleged that the company has a record of “keeping women in job ladders and levels with lower compensation ceilings and advancement opportunities” while “promoting fewer women and promoting women more slowly” than comparable men.

However, Google has denied all of the allegations and maintained that it has fully complied with all applicable laws, rules, and regulations at all times.

“While we strongly believe in the equity of our policies and practices, after nearly five years of litigation, both sides agreed that resolution of the matter, without any admission or findings, was in the best interest of everyone, and we’re very pleased to reach this agreement,” the company said in a statement to AFP.

However, plaintiffs said Google’s settlement would help ensure that women are not paid less than their male counterparts who perform substantially similar work, and that the tech giant’s challenged leveling practices are equitable.

“Google has long been a technology leader. We are delighted that in this Settlement Agreement and Order Google is also affirming its commitment to be a leader in ensuring pay equity and equal employment opportunity for all of their employees,” said Plaintiffs’ co-counsel Jim Finberg.

A judge will still need to approve the agreement, and a preliminary settlement approval hearing is set for 21 June.