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Google Settles Pay Bias Lawsuit By Paying $118 Million To Female Employees

Google settles gender discrimination lawsuit for $118 Million that was filed in 2017.
Published -14 Jun 2022, 19:47 ISTUpdated -14 Jun 2022, 19:59 IST
google pay parity law suit

On June 12, Google agreed to settle a lawsuit filed in 2017 alleging that the company systematically segregates women into employment levels that pay them less and restrict their advancement chances. Google agreed to pay $118 million to settle the gender discrimination lawsuit. 

The settlement promised $118 million in monetary relief for its female employees, as well as to invite external experts to review the company's hiring and remuneration procedures.

The Allegation

The case was brought in 2017 on behalf of all female employees of the company by three former female employees. These female employees accused the company of breaking California's Equal Pay Act. They also highlighted that the corporation maintains a wage disparity of about $17,000 between men and women. 

These female employees also claimed that Google places women in lower-level positions, resulting in lower pay and incentives than their male employees.

Google Statement After Settlement Of The Law Suit

In an official statement accessed by The Verge, Google said that, "While we strongly believe in the equity of our policies and practices, after nearly five years of litigation, both sides agreed that resolution of the matter, without any admission or findings, was in the best interest of everyone, and we’re very pleased to reach this agreement".

It added, "absolutely committed to paying, hiring and leveling all employees fairly and equally". It further highlighted that it will make upward adjustments if it ever finds a pay disparity between male and female employees.

According to the law firms Lieff Cabraser Heimann & Bernstein LLP and Altshuler Berzon LLP statement released on Friday night, the $118 million settlement covers around 15,500 female employees who have worked for the company in California since September 2013.

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