Google paying $118M to settle pay bias case

Google will pay $118 million to settle a case alleging the tech giant paid female employees less than men for similar work. 

A third party will also analyze Google’s pay practices as part of Friday’s settlement agreement ending a case first brought by former employees in 2017. 

A San Francisco Superior Court judge will now have to approve the agreement. 

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

“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 Holly Pease, a former google manager that sued the company. 

“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 lawsuit accused Google of discriminating against female employees by “systematically paying” them lower compensation than male employees, as well as by assigning and keeping women in job levels with lower compensation ceilings and advancement opportunities than they do for men with similar skills and experience. 

A Google spokesperson said the company is “absolutely committed to paying, hiring and leveling all employees fairly and equally,” and has used a “rigorous pay equity analysis” for the past nine years to ensure salaries, bonus 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,” the spokesperson said in a statement. “We’re very pleased to reach this agreement.”  

Updated at 10:17 a.m.