Google to pay $3.8M to settle salary, hiring bias allegations

The U.S. Department of Labor on Monday said Google LLC will pay more than $3.8 million to resolve allegations of systemic compensation and hiring discrimination against more than 5,500 female and Asian employees and job applicants at the company’s California and Washington facilities.

The department said during a routine compliance evaluation, the department’s Office of Federal Contract Compliance Programs identified pay disparities affecting female employees in software engineering positions at its facilities in its Mountain View, California, headquarters and in Seattle and Kirkland, Washington. 

The agency also identified hiring rate differences that disadvantaged female and Asian applicants for software engineering positions at Google locations in San Francisco and Sunnyvale, California, and in Kirkland, the statement said.

Under terms of the agreement, Google will pay $3.8 million to resolve OFCCP’s allegations, including $1.4 million in back pay and interest to 2,565 female employees in engineering positions subject to pay discrimination and $1.2 million in back pay and interest to 1,757 female and 1,219 Asian applicants who were not hired for software positions.

It will also allocate a cash reserve of at least $1.3 million in pay equity adjustments for the next five years for U.S. employees in engineering positions at Google’s Mountain View, Kirkland, Seattle and New York locations, which house about half of Google’s engineering employees nationwide.

Google has provided job opportunities to 51 female and 17 Asian applicants for software positions, the statement said.

The company also agreed to enhance future compliance, and review its current policies, procedures and practices in hiring and compensation, conduct analyses and take corrective action to ensure nondiscrimination, the department said.

Jane Suhr, the OFFCP’s regional director in San Francisco, said in a statement, the department “acknowledges Google’s willingness to engage in settlement discussions and reach an early resolution.

“The technology industry continues to be one of the region’s largest and fastest-growing employers. Regardless of how complex or the size of the workforce, we remain committed to enforcing equal opportunity laws to ensure non-discrimination and equity in the workforce.”

Google did not respond to a request for comment.