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Home  /  Business  /  Google agrees to pay $118 million to settle a class-action gender discrimination lawsuit

Google agrees to pay $118 million to settle a class-action gender discrimination lawsuit

by Prachi Mahamia
June 14, 2022
in Business
Reading Time: 2 mins read
Google agrees to pay $118 million to settle a class-action gender discrimination lawsuit

Google will pay USD 118 million to 15,500 female employees to settle a gender discrimination suit against them. In 2017, there was a class-action lawsuit registered for gender discrimination. In addition, Google must hire an expert labor economist to assess its recruiting procedures and wage equity studies. Over the next three years, the activities following the settlement will be under observation by an external Settlement Monitor.

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“In addition to monetary relief, the settlement provides that an independent third party expert will analyze Google’s leveling-at-hire practices and that an independent labor economist will review Google’s pay equity studies,” plaintiffs’ law firms said in a statement. Plaintiffs believe these programs “will help ensure that women are not paid less than their male counterparts who perform substantially similar work. And that Google’s challenged leveling practices are equitable”.

Court to schedule a session for a preliminary settlement

When approached on Sunday, Google verified the settlement. A spokesperson said, “We are absolutely committed to paying, hiring, and leveling all employees fairly and equally. And for the past nine years, we have run a rigorous pay-equity analysis to make sure salaries, bonuses, and equity awards are fair.” The court will now schedule a session for a preliminary settlement agreement, whereupon the third-party administrator will notify class members.

Some former staff members filed a lawsuit against Google in a San Francisco court in 2017. They alleged that the company paid women less than males for equal skillsets. Moreover, Google assigned women to subordinate ranks than men with the same expertise because they had earlier received a lower salary. In 2021, Google consented to pay the US Department of Labor $3.8 million. It was in response to allegations that there was discrimination against women and Asians at work.

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