Google maintains no wrongdoing, but agrees to pay $28 million to settle lawsuit claiming racial disparity

Back in 2021, a former Googler dragged the company to court alleging racial bias. They claimed Google offered salaries and job roles based on ethnicity of employees. More specifically, they alleged that employees of white and Asian ethnicity were offered better pay packages and positions compared to those from Hispanic, Latino, Native American and other backgrounds.

The class action lawsuit was based on the salary data that many Google employees (across the ethnicities) intentionally leaked to the media, and it covered a total of 6,632 employees that worked for the company between 15 February 2018 and 31 December 2024.

Now, BBC is reporting that Google has agreed to settle the lawsuit by offering $28m (£21.5m) in compensation. The publication also shared a statement made by Google on what the company is labelling as a “resolution” while maintaining no wrong doing.

We reached a resolution, but continue to disagree with the allegations that we treated anyone differently, and remain committed to paying, hiring, and levelling all employees fairly

The lawyers for the Googler (Ana Cantu, who knocked the court’s door) are hailing the collective efforts made by Google employees by sharing their salary data. Here’s what one of them, Cathy Coble, said:

Suspected pay inequity is too easily concealed without this kind of collective action from employees

The lawyers also said the practice of deciding salaries and job roles based on previous roles and pay packages amounted to historical race and ethnicity-based disparities. For now, Judge Charles Adams of the Santa Clara County Superior Court in California has given a preliminary nod to the settlement (or “resolution,” as Google is calling it).