Google agrees to pay $164 million to settle pay discrimination

For Google, which prides itself on an egalitarian ethos, the long-running legal dispute was an uncomfortable subject. PHOTO: NYTIMES

CALIFORNIA (NYTIMES) - Google has settled a class-action lawsuit that accused it of systematically underpaying women, promising to provide US$118 million (S$164 million) in monetary relief and invite outsiders to review its pay practices.

Three former Google employees first sued the company in 2017, claiming that it paid women less than men for the same job; a fourth plaintiff was added later.

A San Francisco Superior Court judge must now approve the Friday (June 10) settlement, which covers about 15,500 women employed in California by Google in 236 different job titles since Sept 14, 2013.

For Google, which prides itself on an egalitarian ethos, the long-running legal dispute was an uncomfortable subject. It coincided with gender discrimination suits against tech peers Microsoft and Oracle that have had mixed results.

The women suing software company Oracle faced a setback on Friday, Bloomberg Law reported earlier, when a judge stripped the plaintiffs of their class-action status.

"While we strongly believe in the equity of our policies and practices, after nearly five years of litigation, both sides agreed that resolution of the matter, without any admission or findings, was in the best interest of everyone," Google spokesman Chris Pappas said in a statement.

"We are very pleased to reach this agreement."

Google has analysed pay equity over the last nine years and raised employees' pay when warranted, he added.

For three years after a formal approval of the settlement, Google will let third-party experts assess how it could improve its pay equity process and be fairer when establishing rank and pay for new hires.

There will also be an external monitor to assess whether the company is following the experts' recommendations, according to the law firms representing the plaintiffs, Lieff Cabraser Heimann & Bernstein and Altshuler Berzon.

Ms Holly Pease, one of the plaintiffs, said in a statement: "As a woman who has spent her entire career in the tech industry, I am optimistic that the actions Google has agreed to take as part of this settlement will ensure more equity for women."

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