Google Settles $28 Million Racial Pay Disparity Class-Action Lawsuit; DEI Policies Still Under Fire

A 2020 study, 'Women In The Workplace,' highlighted the disproportionate number of Black women in corporate America who are less likely to be promoted, supported, or given mentorship to advance in the workplace over male, Latinx, Asian and white colleagues.

Earlier this week, Google agreed to pay $28 million to settle a class-action lawsuit that alleged racial pay disparities, a development that has reignited debates on equity within the tech sector.

The 2021 suit claimed Google systematically underpaid Hispanic, Latino, Native American, and Black employees while favoring white and Asian workers.

Plaintiffs alleged Google placed employees of color in lower pay grades and job levels, regardless of qualifications. A leaked internal document showed that the tech giant had had consistent pay gaps for similar roles. Lawyers argued pay based on prior salaries perpetuated historical inequities, disproportionately affecting marginalized groups.

The settlement, given preliminary approval by a Santa Clara County Superior Court judge, covers over 6,600 employees who worked at Google between Feb. 15, 2018, and Dec. 31, 2024. Workplace equity advocates see the case as highlighting the need for collective action to expose hidden pay disparities.

“Suspected pay inequity is too easily concealed without this kind of collective action from employees,” said Cathy Coble, one of the lawyers representing the plaintiffs.

The tech giant’s settlement does not equate to an admission of guilt, though it prompts scrutiny of Google’s diversity and inclusion pledges.

“We reached a resolution, but continue to disagree with the allegations that we treated anyone differently, and remain committed to paying, hiring, and leveling all employees fairly,” a Google spokesperson told the BBC.

The multi-million dollar settlement occurs amid a broader rollback of major U.S. corporations’ diversity, equity, and inclusion (DEI) efforts. Meta, Amazon, and Walmart have scaled back DEI programs, facing political and legal challenges. Critics argue that DEI initiatives can result in reverse discrimination, while supporters see them as crucial for addressing systemic inequities.

A former Google diversity recruiter, April Christina Curley, alleged discriminatory practices. Curley, a Black and queer woman, filed a 2020 discrimination case, claiming Google sabotaged her efforts to increase Black and brown employee representation. She alleged that resumes from historically Black colleges and universities (HBCUs) and other “unfamiliar” schools were often dismissed.

“I quickly became aware of all the racist s**t put in place to keep Black and brown students out of their pipeline,” Curley wrote in a public statement. “I routinely called out shady recruitment practices such as ‘screening out’ resumes of students with ‘unfamiliar’ school/university names.”

Curley said there was retaliation for advocating equitable hiring. She said managers hindered her work, harassed her, and dismissed her efforts to diversify the talent pipeline. According to the HBCU alum, a colleague even blocked her advancement.

“This white woman also told me that she never felt comfortable supporting my work because she was ‘intimidated’ by me and therefore never considered me for leadership opportunities,” Curley wrote.

Curley’s allegations align with critiques of the tech industry’s diversity struggles. Studies have shown Black women face significant barriers to corporate advancement.

A 2020 study “Women in the Workplace,” highlighted the disproportionate number of Black women in corporate America who are less likely to be promoted, supported, or given mentorship to advance in the workplace over male, Latinx, Asian and white colleagues.

“Black women already face more barriers to advancement than most other employees. Today, they’re also coping with the disproportionate impact of COVID-19 on the Black community. And the emotional toll of repeated instances of racial violence falls heavily on their shoulders,” the report read.

The tech industry’s equity challenges are not unique to Google, but its influence amplifies discussions about accountability. For workplace equity advocates, the settlement underscores the need for transparency and vigilance in addressing systemic disparities.

As tech companies face increasing scrutiny, the future of DEI programs is uncertain. Some fear the rollbacks will worsen existing inequities. Others argue that legal challenges may prompt companies to prioritize equity sustainably.

The $28 million settlement resolves this lawsuit but leaves broader questions about Google’s commitment to diversity and inclusion. It also establishes a precedent for similar legal challenges, potentially encouraging other tech employees to address discriminatory practices. The settlement from the class-action lawsuit marks a significant step in the ongoing pursuit of pay equity and fairness within the tech industry.