Google Must Pay $118 Million In Compensation To Resolve Gender Discrimination Class-Action Lawsuit

Google faces class-action lawsuit over gender discrimination. (photo credit: pixabay)

JAKARTA - Google must pay $118 million (IDR 1.7 trillion) to settle a class-action lawsuit over gender discrimination that includes about 15,500 women. As noted in the settlement press release, Google is also required to have independent labor economists evaluate hiring practices and pay equity studies.

According to a report by The Verge, the lawsuit first surfaced in 2017 after three women filed complaints. They accuse Google of paying substandard female workers. Google has also been accused of violating the California Equal Pay Act, citing a pay gap of about $17,000.

The complaint also accuses Google of locking women into lower career paths. This also leads to lower salaries and lower bonuses when compared to their male counterparts. The plaintiff won the class-action lawsuit last year.

Google's treatment of workers has been the target of scrutiny more than once. Last year, Google agreed to pay $2.5 million to settle a lawsuit claiming the company that female engineers were underpaid and ignored Asian job applicants.

The California Department of Employment and Fair Housing (DFEH) is also investigating the company over complaints of potential harassment and discrimination against black female employees.

"As a woman who has spent her entire career in the tech industry, I am optimistic that the actions that Google has approved as part of this settlement will ensure more equality for women", said Holly Pease, the plaintiff in the case, in a statement quoted by The Verge.

“Google, since its founding, has led the technology industry. They also have the opportunity to take the lead in ensuring inclusion and equality for women in technology", she added.

The terms of the settlement still need to be approved by the judge in the trial which will take place on June 21.

“While we strongly believe in the equality of our policies and practices, after nearly five years of litigation, both sides agree that resolving the issue, without any acknowledgment or finding, is in everyone's best interest. We are very pleased to have reached this agreement", Google said in a statement to The Verge.

Google added that it is "absolutely committed to paying, hiring and distributing all employees fairly and equally", and that it makes an "upward adjustment" if it finds any pay differences between male and female employees.

Several similar lawsuits targeting the pay gap have emerged in the past decade, with gender discrimination class-action lawsuits against Microsoft and Twitter failing to gain traction.

Oracle also faces a class-action lawsuit alleging unequal pay, but according to Bloomberg, the women's group suing the company may lose class-action status after a judge said the class with 3,000 employees and 125 job classifications would be "unruly" to go to court.

Other technology companies, such as Apple and Riot Games, have also faced accusations of pay inequality.