Google will pay $3.8 million in hiring, pay discrimination settlement
What's the story
Google will settle hiring and pay discrimination investigation by paying $3.8 million, including $2.6 million in back pay.
The US Department of Labor (DOL) noticed Google underpaid women and unfairly passed over women and Asians for job openings. The irregularities were found during a routine compliance audit required by Google's status as a supplier of technology to the US government.
Pocket change
Underpaid female engineers, unhired Asians and women will receive compensation
The Office of Federal Contract Compliance Programs found that Google underpaid 2,783 women in its software engineering group in California and Seattle between 2014 and 2017.
It will pay $1.35 million in back pay and interest to 2,565 female engineers (around $528 each). It will also pay $1.23 million to 1,757 female and 1,219 Asian applicants who weren't hired.
Underlying issues
Google pleased to resolve issue, highlights investments in fair hiring
The remaining $1.25 million will be used for pay-equity adjustments over five years at locations identified by the DOL investigation.
In a statement, Google said it is pleased to have resolved the issue. It said employees should be paid based upon the work they do and not who they are.
It would've helped if Google had realized this before perpetrating institutional racism and misogyny.
Demanding a say
Alphabet Workers Union formed in January to tackle policy issues
This is not the first time Google ran afoul of its employees. Growing dissent within the organization led to the formation of Alphabet Workers Union (AWU) last month.
AWU was formed by Google employees from the US and Canada. It aims to influence Google's approach to sociopolitical matters and tackle internal policies on pay disparity.
Open secrets
Google repeatedly attempted to quell union efforts
Google hired IRI Consultants in 2019. IRI is known for its anti-union efforts and was hired when employees didn't have an official union.
Although AWU might not get a majority of Google's well-compensated workforce on its side, its mission statement clarifies its intent to make Alphabet act ethically and in the best interest of society and the environment.