The tech giant Google has agreed to pay $2.59 million to more than 5,500 current employees and former job applicants as part of a settlement with the U.S. Department of Labor over allegations of systemic discrimination as it relates to compensation and hiring.
During a routine compliance evaluation, the department’s Office of Federal Contract Compliance Programs identified pay disparities affecting female employees in software engineering positions at its facilities in Mountain View, and in Seattle and Kirkland, Washington.
The agency also identified hiring rate differences that disadvantaged female and Asian applicants for software engineering positions at Google’s locations in San Francisco and Sunnyvale, and in Kirkland.
Under the terms of the early resolution conciliation agreement, Google agreed to the following:
- To pay $3,835,052 to resolve OFCCP’s allegations, namely $1,353,052 in back pay and interest to 2,565 female employees in engineering positions subject to pay discrimination; and $1,232,000 in back pay and interest to 1,757 female and 1,219 Asian applicants for software engineering positions not hired.
- Allocate a cash reserve of least $1,250,000 in pay-equity adjustments for the next 5 years for U.S. employees in engineering positions at Google’s Mountain View, Kirkland, Seattle and New York establishments, locations that house approximately 50 per cent of Google’s engineering employees nationwide. Google has provided job opportunities to 51 female and 17 Asian applicants for software engineering positions.
Google agreed to enhance future compliance proactively and review its current policies, procedures and practices related to hiring, compensation; conduct analyses; and take corrective action to ensure non-discrimination.
“Pay discrimination remains a systemic problem. Employers must conduct regular pay equity audits to ensure that their compensation systems promote equal opportunity,” said Office of Federal Contract Compliance Programs Director Jenny R. Yang.
“The U.S. Department of Labor acknowledges Google’s willingness to engage in settlement discussions and reach an early resolution,” said Office of Federal Contract Compliance Programs Regional Director Jane Suhr, 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.”
