Google will pay $2.5 million to more than 5,500 employees and job applicants impacted by its alleged systematic pay and hiring discrimination. The US Department of Labor had also found that the company was underpaying female software engineers.
In addition to these, the department identified “hiring rate differences that disadvantaged female and Asian applicants” for Google engineering positions.
To settle this, Google will pay out $1,353,052 in back pay and interest to 2,565 female engineers. The tech giant is to also pay $1,232,000 in back pay and interest to 1,757 female engineering applicants. 1,219 Asian engineering applicants will also get payouts for “engineering positions not hired”.
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Google employees at its offices in Mountain View, Seattle, and Kirkland, Washington were affected by the alleged pay disparity ad discrimination.
Additionally, Google is to pay out $1,250,000 for pay-equity adjustments. This amounts to a total of $3.8 million to resolve the issue. The $1.25 million will go towards its engineers in Mountain View, Seattle, Kirkland, and New York. Those four locations represent 50 percent of Google’s engineering staff in the US, according to the Department of Labor.
“Pay discrimination remains a systemic problem. Employers must conduct regular pay equity audits to ensure that their compensation systems promote equal opportunity,” Jenny R. Yang, director of the office of federal contract compliance programs said in a statement.
Google says it remains committed to supporting its people in a way that allows them to do their best work: “We believe everyone should be paid based upon the work they do, not who they are, and invest heavily to make our hiring and compensation processes fair and unbiased. For the past eight years, we have run annual internal pay equity analysis to identify and address any discrepancies. We’re pleased to have resolved this matter related to allegations from the 2014-2017 audits and remain committed to diversity and equity and to supporting our people in a way that allows them to do their best work,” a Google spokesperson said in a statement.
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