Google has agreed to pay $2.59 million to more than 5,500 current employees and former job seekers as part of a settlement with the U.S. Department of Labor over allegations of managerial discrimination because it relates to compensation and hiring. Google has agreed to reserve $250,000 per year for the next five years to adjust any potential salary equity. This brings Google’s total financial commitment to $3.8 million – a drop in the bucket for a company whose parent company Alphabet has a market cap of $1.28 trillion.
DOL’s Federal Contract Compliance Packages workplace discovered after discovering inequalities in compensating female software program engineers in Google’s workplaces in Seattle and Kirkland, as well as Google’s workplaces in Mountain View. The OFCCP also discovered a variety of charges in addition to charging engineers in San Francisco, Sunnyvale, and the Google region of Kirkland for their role in “depriving female and Asian candidates”. OFCCP’s analysis is bound for August 1, 2014 through August 31, 2017.
As part of the settlement, Google has agreed to pay $1.35 million in salary and curiosity to 2,565 feminine software program engineers at the firm ($527.50 per worker) and $1.25 million in again pay and curiosity to 1,757 women and 1,219 Asian candidates for software program engineering ($414 per particular person).
Until the end, Google will reserve $1.25 million for the next five years for U.S. engineers in the workplaces of Mountain View, Kirkland, Seattle and New York to move toward pay-equity changes.
A Google spokesperson told TechCrunch in a statement: “We consider that everyone should be paid based on what they do, not who they are, and that investments are being made to make our recruitment and compensation process honest and impartial.”
“For the past eight years, we have now conducted an annual internal pay equity assessment to establish and address any inequalities. We have resolved this issue involving complaints from the 2014-2017 and are committed to diversity and fairness and we are happy to support our individuals with an approach that enables them to do their greatest work. “
“The U.S. Department of Labor recognizes Google’s interest in engaging in settlement negotiations and reaching a preliminary solution,” said Jane Suhr, regional director of the Federal Contract Compliance Program in San Francisco. “The technology industry is set to become one of the largest and fastest-growing employers in the region. Regardless of the size or size of the workforce, we are committed to enforcing equal opportunity legislation to ensure inequality and equality in the workforce.