Google settles with the Department of Labor over allegations of discrimination against employees

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The company is expected to pay more than $ 2.5 million to approximately 5,500 employees and applicants who were reportedly undercompensated or faced with discrimination in hiring.

The settlement resolves allegations that the company had discriminated against women and Asian job applicants for technical positions in some of its West Coast offices. The ministry had also reportedly identified wage gaps that adversely affected women in software engineering positions.

The allegations stemmed from routine compliance checks conducted between 2014 and 2017. Monday’s settlement, ministry officials said, reflected Google (GOOG)willingness to find an “early solution” to the issue.
Google has been widely criticized after parting ways with a leading voice in AI ethics

“We believe that everyone should be paid based on the work they do, not who they are, and we invest heavily to make our recruiting and compensation processes fair and unbiased,” said a Google spokesperson. a statement to CNN Business. “We are delighted to have resolved this issue in relation to the allegations from the 2014-2017 audits and remain committed to diversity and fairness and to supporting our people in a way that enables them to do their best work. “

Google, like many of its tech industry peers, has come under scrutiny for its treatment of women, minorities, and workers in general. In recent months, the company has faced pressure on the union and controversy over the departure of a respected leader in ethical research on artificial intelligence.

As part of the settlement, Google will pay more than $ 1.3 million to compensate approximately 2,500 software engineers who have allegedly faced pay discrimination, according to the Labor Department. And it will also pay more than $ 1.2 million to compensate applicants who have not been hired as a result of the alleged recruitment discrimination.

A separate $ 1.25 million fund will be created for five years of “pay-to-equity adjustments” for Google’s technical employees who work in Mountain View, California; two offices in the Seattle area; and New York.

“Google agreed to proactively improve future compliance and to review its current hiring and compensation policies, procedures and practices; to conduct analysis and take corrective action to ensure non-discrimination,” the department said in a press release .

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