Google has agreed to a $28 million settlement to resolve a class action lawsuit alleging racial bias in compensation and career advancement practices. The lawsuit claimed that employees from underrepresented ethnic backgrounds were consistently paid less and offered lower-level positions compared to their white and Asian colleagues. Although the tech giant denies any wrongdoing, it confirmed it had “reached a resolution” in the matter.
The Origins of the Case
The legal action was initiated in 2021 by Ana Cantu, a former Google employee. Cantu, along with her legal team, accused the company of systematically disadvantaging Hispanic, Latino, Native American, and other minority employees in terms of pay and promotion. The lawsuit centered on internal company data that had been leaked, which allegedly revealed a pattern of pay disparities among different racial and ethnic groups.
Allegations Based on Internal Data
According to Cantu’s legal team, Google’s practice of setting pay and job level based on an employee’s prior salary reinforced long-standing racial and ethnic disparities. The class action represented more than 6,600 individuals who were employed by Google between February 15, 2018 and December 31, 2024.
Santa Clara County Superior Court Judge Charles Adams granted preliminary approval for the settlement, marking a significant moment in the ongoing conversation around equity in the tech industry.
Employee-Led Action Brings Case to Light
The lawsuit gained traction following the leak of compensation data by Google employees. Cathy Coble, one of the attorneys representing the plaintiffs, commended those who came forward.
“The bravery of both the diverse and ally Googlers who self-reported their pay and leaked that data to the media was instrumental,” she said. “Suspected pay inequity is too easily concealed without this kind of collective action from employees.”
Google’s Response
Despite agreeing to the settlement, Google denied the accusations of racial discrimination.
“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,” a Google spokesperson told the BBC.
Shifting Corporate Culture and DEI Rollbacks
The settlement comes at a time when several major U.S. corporations are scaling back their diversity, equity, and inclusion (DEI) initiatives. Google, once a vocal advocate of DEI principles, has recently joined companies like Meta, Amazon, McDonald’s, Walmart, and Pepsi in quietly pulling back these programs.
Political Pressure and Policy Changes
The rollback is seen in part as a response to increasing criticism from conservative political figures. Former President Donald Trump, now back in office, has directed federal agencies and contractors to eliminate DEI frameworks. His administration views such initiatives as ideologically driven rather than merit-based, prompting a broader reassessment across the private sector.
What’s Next?
Though the settlement does not include an admission of guilt from Google, it has reignited public discussion around workplace equity and transparency in compensation. If approved in final court hearings, the $28 million settlement will be distributed among thousands of affected employees.
- Settlement amount: $28 million
- Covered period: February 2018 – December 2024
- Employees involved: At least 6,632
The case may serve as a bellwether for how major tech firms handle future allegations of systemic bias and whether meaningful structural changes are on the horizon or if settlements will continue to be the preferred route.
