Tech giant Google has agreed to pay $28 million (£21.5 million) to settle a lawsuit that alleged racial bias in its compensation and career advancement practices. The lawsuit, which was filed by former employee Ana Cantu in 2021, claimed that Hispanic, Latino, Native American, and other minority workers were unfairly paid less and given fewer career opportunities than their white and Asian colleagues. While Google confirmed the settlement, it denied any wrongdoing, insisting that it remained committed to fair practices.
Allegations of Pay and Job Level Disparities
The lawsuit stemmed from a leaked internal document, which Cantu’s legal team argued showed evidence that employees from certain racial and ethnic backgrounds earned less for the same work. The plaintiffs contended that Google’s approach to setting pay levels, which was based on previous salaries, perpetuated existing racial and ethnic disparities. They argued that this practice set new hires’ wages lower than those of their white and Asian counterparts, irrespective of job performance or experience.
Cantu’s legal battle raised concerns about pay equity in tech companies, particularly regarding how compensation structures might unintentionally discriminate against certain groups. Judge Charles Adams of the Santa Clara County Superior Court in California granted preliminary approval for the settlement, which now offers financial compensation to more than 6,600 affected employees.
A Collective Fight for Fair Compensation
This class action lawsuit included 6,632 employees who worked at Google between February 15, 2018, and December 31, 2024. The settlement marks a significant moment for these workers, who had long suspected pay disparities but had little power to address them individually. Lawyers representing the plaintiffs, including Cathy Coble, praised the whistleblowers who shared the information with the media, calling their actions vital in uncovering what was perceived as a systemic issue within the company.
“Suspected pay disparities remain hidden without employees taking collective action,” said Coble, emphasizing the importance of solidarity and transparency within companies.
Google’s Position and Broader DEI Concerns
Despite agreeing to the settlement, Google firmly denied any allegations of racial discrimination. A spokesperson for the company stated, “We settled this case but reject claims that we treated employees unfairly. We remain committed to fair pay, hiring, and leveling.”
This settlement comes amid broader discussions surrounding diversity, equity, and inclusion (DEI) initiatives in major U.S. companies. Earlier this year, Google joined several other firms, including Meta, Amazon, and Pepsi, in scaling back its DEI programs, following pressure from political figures, notably former President Donald Trump. Since taking office again, Trump has pushed for the elimination of DEI initiatives across government agencies and contractors.
The Implications for the Tech Industry
While the $28 million settlement represents a fraction of Google’s financial standing, it underscores the ongoing scrutiny tech companies face regarding their hiring and pay practices. Google, along with other major tech players, has been under increasing pressure to address concerns about equity and inclusivity in the workplace. This settlement may signal a growing trend where workers take legal action to address perceived disparities, particularly in an industry known for its wealth and influence.
For now, Google remains at the center of a larger debate about how corporate America balances its diversity goals with the realities of hiring practices and political pressures. The tech industry, in particular, is grappling with how to implement inclusive and fair policies while remaining under the spotlight of public opinion and regulatory scrutiny.
The full impact of this lawsuit and its settlement may take time to fully unfold, but it highlights the importance of ongoing conversations about racial equity in the workplace.
