Google has agreed to a $28 million (£21.5 million) settlement to resolve a lawsuit alleging that white and Asian employees received preferential pay and career advancement over workers from other racial backgrounds, according to the law firm representing the plaintiffs.

While the tech giant confirmed reaching a settlement, it denied any wrongdoing and rejected the claims made against it.

The lawsuit, filed in 2021 by former Google employee Ana Cantu, accused the company of placing Hispanic, Latino, Native American, and other underrepresented workers at lower starting salaries and job levels compared to their white and Asian colleagues. Cantu's case relied on a leaked internal document that reportedly showed compensation disparities for employees performing similar work.

According to her legal team, Google's practice of basing initial salaries and job rankings on prior pay history perpetuated racial and ethnic pay gaps.

Judge Charles Adams of the Santa Clara County Superior Court in California granted preliminary approval for the settlement, which covers at least 6,632 employees who worked at Google between February 15, 2018, and December 31, 2024, per Reuters.

Attorney Cathy Coble, who represents the plaintiffs, commended the employees who disclosed their pay data despite potential risks.
"Pay disparities often go unnoticed without collective action like this," she stated.

Despite agreeing to the payout, Google continues to refute the allegations. 

"We have resolved this case but strongly disagree with the claim that we treated employees unfairly. We remain committed to fair pay, hiring, and promotion practices," 

Earlier this year, Google joined other major U.S. corporations, including Meta, Amazon, McDonald's, Walmart, and Pepsi, in scaling back diversity, equity, and inclusion (DEI) programs.
The rollback aligns with President Donald Trump’s directive to eliminate DEI initiatives from government agencies and contractors, as his administration continues its opposition to such policies.