Google has agreed to settle a lawsuit that alleged the search giant was paying different wages to employees with similar duties and experience, based on their gender. The lawsuit will be settled with Google paying around 15,500 employees a combined $118 million. The company will also welcome third-party experts to improve its gender pay balance.
Google agreed to open some of its processes pertaining to salaries and placements, to independent review. The terms are part of the settlement of a class-action lawsuit alleging gender-based pay discrimination. A judge will review the settlement in a preliminary hearing on June 21. Speaking about the settlement, Google’s spokesperson said:
While we strongly believe in the equity of our policies and practices, after nearly five years of litigation, both sides agreed that the resolution of the matter, without any admission or findings, was in the best interest of everyone.
Simply put, Google has not admitted to intentionally paying different wages to employees with similar duties, based on their genders. Moreover, as part of the settlement, Google is allowing third parties to examine how it sorts new recruits into levels upon hiring. Incidentally, this was the primary cause of concern and the reason for accusing Google of practicing gender discrimination in pay.
Google has been conducting “Pay Equity” studies and claims it uses the findings to monitor and correct pay disparities across the company. As part of the settlement, a labor economist will review the studies and the findings. Google claims the studies resulted in “upward adjustments” for almost 3,400 employees, totaling $4.4 million.
Plaintiffs in the lawsuit argued that “Google assigns women to lower job levels than men with comparable experience and education based on lower pay at prior employment.” Needless to mention, a higher placement level equals greater pay and bonuses. Apart from placements, plaintiffs also argued that they were given less prestigious assignments despite their experience. This, allegedly, resulted in slower growth prospects at the company.
Source: BusinessWire