Google has agreed to pay $28 million to settle a class action lawsuit that claims it favored white and Asian employees over their counterparts from other ethnic backgrounds in terms of compensation and career advancement.
The settlement, which has received preliminary approval from Judge Charles Adams of the Santa Clara County Superior Court in California, was announced by the tech giant, a subsidiary of Alphabet. Despite confirming the settlement, Google maintains that it has not engaged in discriminatory practices against any of its employees.
Former Google employee Ana Cantu spearheaded the lawsuit filed in 2021. Cantu, who identifies as Mexican and racially Indigenous, alleged that employees from Hispanic, Latino, Native American, and other backgrounds were offered lower starting salaries and were assigned to lower job levels in comparison to white and Asian employees. Cantu claimed that throughout her seven years at Google, she remained at the same job level while her white and Asian peers received higher pay and promotions.
According to the lawsuit, which involves at least 6,632 current and former Google employees who worked at the company between February 15, 2018, and December 31, 2024, the practices alleged within violated the California Equal Pay Act. Cantu's claims were bolstered by a leaked internal document that purportedly revealed that employees of various ethnicities were being compensated unequally for similar work.
In a statement, Google addressed the allegations, asserting, "We reached a resolution, but continue to disagree with the allegations that we treated anyone differently, and remain committed to paying, hiring, and leveling all employees fairly." The settlement enables Google to resolve the claims while not admitting any wrongdoing.
Judge Adams, who approved the settlement, remarked that it was a fair and reasonable agreement, calling it "a good result for the class." He also scheduled a hearing for September 11, 2025, to ratify the final settlement details.
The total net proceeds of the settlement amount to $20.4 million after accounting for $7 million in legal fees, penalties tied to Cantu’s claim under California’s Private Attorneys General Act, and other related costs. This outcome follows a wider trend in corporate America, where other major companies have re-evaluated their commitments to diversity, equity, and inclusion (DEI) policies amid shifting political landscapes.
Cathy Coble, one of the attorneys representing Cantu and the impacted employees, praised the actions taken by those who spoke out, stating, "Suspected pay inequity is too easily concealed without this kind of collective action from employees." Coble emphasized that the bravery of Googlers who reported their pay discrepancies played a significant role in bringing the issue to light.
This legal challenge isn't the first for Google regarding allegations of racial bias. Earlier cases shed light on similar accusations, including the claim brought forth by Jalon Hall, a Black and deaf employee who sued Google for racial and disability discrimination in March 2024. Additionally, April Curley filed a suit in 2022 alleging that Google discriminated against Black employees, claiming that they were hired at lower levels, received less pay, and were denied career advancement opportunities.
Curley, who was terminated in 2020, argued that her hiring was merely a marketing tactic for diversity, highlighting a concerning pattern within the company. In her case, she noted that Google’s corporate culture unfairly favored white employees, while Black workers remained grievously underrepresented in higher positions within the firm.
In light of these legal entanglements and mounting scrutiny surrounding its hiring practices, Google's recent move to scale back its diversity initiatives parallels political rhetoric from figures like former President Donald Trump, who have criticized DEI efforts as unnecessary or ineffective. The related implications for organizational practices, including compensation equity, reflect ongoing debates about fairness and accountability in large tech corporations.
As Google navigates this evolving landscape of public perception and legal challenges, the forthcoming hearings regarding the final approval of its settlement offer will undoubtedly have significant ramifications for both the company and its employees. The case exemplifies the ongoing struggle for equity in an industry often scrutinized for its diversity shortcomings.
