Google Agrees to $118 Million Settlement Over Gender Discrimination Lawsuit

The Google logo is displayed on a sign outside of the Google headquarters in Mountain View, Calif., on Sept. 2, 2015. Justin Sullivan/Getty Images

Tech giant Google has agreed to pay $118 million to settle a case bought by four former female employees who alleged the company paid its female workers less than men for substantially similar work.

The lawsuit was originally filed in September 2017 and a settlement was reached on June 10, according to a press release from the plaintiffs’ law firms.

Plaintiffs were named as Kelly Ellis, a software engineer who worked at Google’s Mountain View office for approximately four years; Holly Pease, who had held numerous roles at Googles Mountain View and Sunnyvale offices for approximately 10.5 years; Kelli Wisuri, who worked for Google for approximately 2.5 years in its Mountain View office, as an enterprise operations coordinator among other roles; and Heidi Lamar, who had been employed as a preschool teacher and infant/toddler teacher at Google’s Children Center in Palo Alto for approximately four years.

The four women alleged that the tech giant pays women less than men in the same job code, which they claim is a violation of California’s Equal Pay Act, the state’s Unfair Competition Law, and California’s Business and Professions Code.

Under California’s Equal Pay Act, employers cannot pay men and women performing substantially equal or similar work differently.

Plaintiffs also alleged that Google “assigns women to lower job levels than men with comparable experience and education based on lower pay at prior employment,” which they said is a violation of California’s Fair Employment and Housing Act.

The plaintiffs won class-action status in May 2021.

The settlement covers 15,500 female employees in 236 job titles in California since September 14, 2013.

In addition to the $118 million monetary relief provided under the settlement, an independent third-party expert will also analyze Google’s leveling-at-hire practices and an independent labor economist will review the company’s pay equity studies.

Plaintiffs praised the decision and said they believed it will help ensure that women are paid equally to their male counterparts who perform substantially similar work going forward.

The preliminary terms of the settlement still need to be approved by a judge in a hearing scheduled for June 21.

“As a woman who’s spent her entire career in the tech industry, I’m optimistic that the actions Google has agreed to take as part of this settlement will ensure more equity for women,” said Pease. “Google, since its founding, has led the tech industry. They also have an opportunity to lead the charge to ensure inclusion and equity for women in tech.”

The latest settlement comes after Google last year agreed to pay $2.5 million to more than 5,500 employees and job applicants in a lawsuit that alleged pay and hiring discrimination. That lawsuit claimed the company had underpaid female software engineers and its hiring process disadvantaged both women and Asian applicants for those roles.

A spokesperson for Google said in a statement to The Verge following the settlement that it is “absolutely committed to paying, hiring and leveling all employees fairly and equally” and has used a pay equity analysis for the last nine years to ensure that salaries, bonuses, and equity awards are fair.

“While we strongly believe in the equity of our policies and practices, after nearly five years of litigation, both sides agreed that resolution of the matter, without any admission or findings, was in the best interest of everyone. We’re very pleased to reach this agreement,” the spokesperson also said.

The Epoch Times has also contacted Google for comment.