Google has agreed to pay $28 million to settle a class-action lawsuit alleging racial discrimination in its pay and promotion practices. The lawsuit, filed in 2021 by former employee Ana Cantu, claimed that the company favored white and Asian employees over those from Hispanic, Latino, Indigenous, Native American, and other minority backgrounds by offering them higher salaries and better career advancement opportunities.
Cantu, who identifies as Mexican and racially Indigenous, worked in Google’s people operations and cloud departments for nearly seven years. She alleged that despite her exemplary performance, she remained at the same job level, while her white and Asian peers received promotions and higher pay. The lawsuit contended that Google systematically placed white and Asian employees in higher job levels for the same work and withheld raises and promotions from those who complained, violating the California Equal Pay Act.
The settlement received preliminary approval from Judge Charles Adams of the Santa Clara County Superior Court in California. It affects at least 6,632 Google employees in California who worked at the company between February 15, 2018, and December 31, 2024. The net settlement proceeds amount to $20.4 million after deducting $7 million for legal fees, … . A final approval hearing is scheduled for September 11.
Google has denied the allegations, maintaining its commitment to fair pay and promotion practices. A company spokesperson stated, “We continue to disagree … , and leveling all employees fairly.”
This settlement comes amid a broader rollback of diversity, equity, and inclusion (DEI) initiatives across major U.S. corporations, including Meta, Amazon, McDonald’s, and Walmart, in response to political and legal challenges. Critics argue that DEI programs can result in reverse discrimination, while supporters see them as crucial for addressing systemic inequities.
The lawsuit also highlighted that pay disparities were perpetuated by Google’s practice of basing salaries on prior compensation, which can reinforce historical inequities affecting marginalized groups. Leaked internal documents reportedly showed that employees from underrepresented backgrounds were consistently paid less for similar roles.
The exclusion of Black employees from the settlement class has raised questions about the scope of the lawsuit and the complexities involved in addressing pay disparities across different minority groups. The settlement underscores the need for transparency and vigilance in addressing systemic disparities within the tech industry.
As tech companies face increasing scrutiny, the future of DEI programs remains uncertain. Some fear that scaling back these initiatives will exacerbate existing inequities, while others argue that legal challenges may prompt companies to prioritize equity in more sustainable ways. The $28 million settlement resolves this lawsuit but leaves broader questions about Google’s commitment to diversity and inclusion, potentially setting a precedent for similar legal challenges in the tech industry.
This case highlights the ongoing challenges that underrepresented groups face in the tech industry and the importance of continued efforts to promote equity and inclusion. It also emphasizes the role of legal action in addressing systemic issues and holding corporations accountable for their employment practices. As the industry evolves, the commitment to creating a fair and inclusive workplace remains a critical concern for both employees and employers.
