Google has agreed to pay $28 million to settle a class-action lawsuit alleging that it favored white and Asian employees in pay and career advancement, while workers from Hispanic, Latino, Native American, and other minority backgrounds were placed in lower-paying roles and denied similar opportunities. The lawsuit, filed in 2021 by former employee Ana Cantu, claimed that despite performing similar or superior work, minority employees were often assigned lower job levels and received less compensation than their white and Asian peers. Cantu, who identifies as Mexican and racially Indigenous, worked for Google for seven years and alleged that the company systematically withheld raises and promotions from those who raised concerns about these disparities.

The legal action was brought in California’s Santa Clara County Superior Court, covering at least 6,632 current and former Google employees in California who worked at the company between February 15, 2018, and December 31, 2024. The case was supported by internal documents that reportedly showed compensation discrepancies and reinforced claims of systemic inequities. Judge Charles Adams granted preliminary approval for the settlement, describing it as fair and a good result for the affected class. The net proceeds from the settlement, after legal fees and costs, will total about $20.4 million for eligible employees.

Although Google has agreed to the settlement, the company continues to deny any wrongdoing, stating, “We continue to disagree with the allegations that we treated anyone differently, and remain committed to paying, hiring, and levelling all employees fairly”. As part of the agreement, Google will also work with a labor economist and an industrial and occupational psychologist to review its pay equity audits and hiring practices to prevent future disparities. The final hearing to approve the disbursement of funds is scheduled for September 11, 2025.

Notably, Black employees were excluded from the class covered by this settlement following a request from Google, a move agreed to by Cantu’s legal team earlier in the proceedings. The lawsuit and resulting settlement highlight ongoing concerns about diversity, equity, and inclusion within the tech industry, as well as the broader debate over corporate responsibility and fair employment practices.