Alphabet-owned Google has agreed to pay $28 million to settle a lawsuit claiming that the tech giant favoured white and Asian workers by paying them more than other employees, reported Reuters.
The settlement agreement with Google had won preliminary approval last week from Judge Charles Adams of the Santa Clara County Superior Court in California.
The settlement was reached after the petitioner agreed to exclude Black employees from the proposed class, which Google had sought.
The judge had called the settlement fair, reasonable and “a good result for the class” of at least 6,632 people employed by Google in California between February 15, 2018, and December 31, 2024.
According to the Reuters report, Google confirmed the settlement and said: “We continue to disagree with the allegations that we treated anyone differently and remain committed to paying, hiring and leveling all employees fairly.”
The class-action lawsuit was filed by Ana Cantu, who identifies herself as Mexican and racially Indigenous, on behalf of Hispanic, Latinx, Indigenous, Native American, American Indian, Native Hawaiian, Pacific Islander and Alaska Native employees at the Mountain View, California-based company.
Cantu claimed that she had performed exemplary work over seven years in Google’s people operations and cloud departments, yet languished at the same job level, while white and Asian peers got extra pay and promotions.
The company put white and Asian employees in higher “levels” than other workers, even for the same job, and withheld raises and promotions from those who complained, she also said.
Net settlement proceeds total $20.4 million, after deducting $7 million for legal fees, penalties tied to Cantu’s claim under California’s Private Attorneys General Act, and other costs.
Google’s actions violated the California Equal Pay Act, Cantu further said.
She had left Google in September 2021.
The court has fixed September 11, 2025, as the next hearing date to consider final settlement approval.
Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.