Google has agreed to pay $28 million to settle a lawsuit alleging racial bias in its recruitment and compensation practices. The lawsuit claimed that white and Asian employees received better pay and career opportunities compared to workers from other ethnic backgrounds. The settlement marks another instance of a major U.S. company retreating from commitments to diversity, equity, and inclusion (DEI) principles.
The lawsuit, filed by former employee Ana Cantu, accused Google of paying Hispanic, Latino, Native American, and other minority employees lower starting salaries and job levels than their white and Asian peers. Ms. Cantu's case relied on a leaked internal document that allegedly revealed disparities in compensation for similar work among different ethnic groups. This class action lawsuit encompasses at least 6,632 individuals who were employed by Google between February 2018 and December 2024.
Judge Charles Adams of the Santa Clara County Superior Court in California has given preliminary approval to the settlement. Google's spokesperson confirmed the agreement to the BBC, stating:
"We reached a resolution, but continue to disagree with the allegations that we treated anyone differently, and remain committed to paying, hiring, and levelling all employees fairly."
The practice of determining starting pay and job level based on prior salaries was criticized by Ms. Cantu's lawyers, who argued that it reinforced historical racial and ethnic disparities. Cathy Coble, one of the attorneys representing the claimants, acknowledged the importance of this collective action:
"Suspected pay inequity is too easily concealed without this kind of collective action from employees."
The settlement comes as part of a larger trend where U.S. firms are retreating from DEI commitments. Google's decision coincides with similar moves by other major companies such as Meta, Amazon, Pepsi, McDonald's, and Walmart. This shift follows political pressure as former President Donald Trump and his allies have attacked DEI policies, leading to an order for government agencies and contractors to eliminate such initiatives.
Google's withdrawal from DEI commitments reflects a broader change among U.S. companies, raising concerns about the future of workplace diversity and equality initiatives. The final approval of the settlement is still pending further review.