Alphabet Inc’s Google will spend $3.8 million, including $2.6 million in backpay, to settle allegations that it underpaid women and unfairly passed over women and Asians for job openings.
Beginning of the issue
Several years ago, the allegations stemmed from a routine compliance audit required by Google’s status as a supplier of technology to the federal government.
Investigators also found hiring rate differences that disadvantaged women and Asian candidates during the year ended August 31, 2017, for software engineering roles in San Francisco, Sunnyvale, California, and Kirkland, Washington.
The company already conducts annual pay audits, but like other big tech companies, it remains under public scrutiny for a workforce that does not reflect the country’s make-up in terms of race and gender.
About Settlement
The settlement includes $2.6 million in back pay to 5,500 employees and job candidates and calls on Google to review hiring and salary practices.
Google also will set aside $1.25 million for pay adjustments for engineers in Mountain View, Kirkland, Seattle and New York over the next five years, according to the settlement.
Any unused funds will be spent on diversity efforts at Google.
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