Google has agreed to pay $28 million to settle a class-action lawsuit alleging that the tech giant systematically paid white and Asian employees more and placed them on higher career tracks than workers from other racial and ethnic backgrounds doing similar work.
While Google has denied wrongdoing, the settlement—now granted preliminary approval by a California court—has reignited global debate about equity, transparency, and accountability in the tech industry.
Here is what the case is about, why it matters legally, and what happens next.
Who Brought the Case?
The lawsuit was led by Ana Cantu, a former Google employee who identifies as Mexican and racially Indigenous. She filed the case on behalf of thousands of current and former Google workers from groups including:
- Hispanic and Latinx
- Indigenous and Native American
- American Indian
- Native Hawaiian
- Pacific Islander
- Alaska Native employees
Cantu worked at Google for seven years in its people operations and cloud divisions. She alleges that despite consistently strong performance, she remained stuck at the same job level while white and Asian colleagues received higher pay, faster promotions, and better career progression.
She left Google in September 2021.
What Were the Legal Claims?
At the heart of the case is the California Equal Pay Act, one of the strongest pay equity laws in the United States.
Under the Act, employers are prohibited from paying employees differently based on race, ethnicity, or gender when they perform “substantially similar work,” unless the employer can clearly justify the difference using legitimate factors such as seniority or merit.
The lawsuit claimed that Google:
- Assigned white and Asian employees to higher job “levels” for the same work
- Paid those employees more from the outset
- Denied raises or promotions to other employees who raised concerns
- Used opaque internal systems that made disparities difficult to challenge
Cantu also brought claims under California’s Private Attorneys General Act (PAGA), which allows workers to seek civil penalties on behalf of the state for labor law violations.
Who Is Covered by the Settlement?
Judge Charles Adams of the Santa Clara County Superior Court approved the settlement as “fair, reasonable, and a good result for the class.”
The settlement covers at least 6,632 Google employees who worked in California between February 15, 2018, and December 31, 2024.
Notably, Black employees were excluded from the final class definition after negotiations between the parties—an unusual but legally significant narrowing of the case.
How Is the $28 Million Being Distributed?
While the settlement amount is $28 million, the net payout to employees is about $20.4 million after deductions, including:
- $7 million in attorneys’ fees
- Costs and penalties tied to the PAGA claims
- Administrative expenses
Eligible employees will receive payments based on factors such as length of employment, job level, and compensation history.
Did Google Admit Fault?
No.
Google spokesperson Courtenay Mencini confirmed the settlement but emphasized that the company disputes the allegations.
“We continue to disagree with the allegations that we treated anyone differently and remain committed to paying, hiring, and leveling all employees fairly,” she said.
As is typical in civil settlements of this kind, Google did not admit liability, and the agreement allows the company to avoid a lengthy trial and potential reputational damage.
Why This Case Matters Beyond Google
Legally, the case highlights three broader issues:
- Career “Leveling” as a Legal Risk
Internal job-level systems—common in tech firms—are increasingly being scrutinized as potential vehicles for discrimination. - Strength of State-Level Employment Laws
California’s Equal Pay Act is often more powerful than federal anti-discrimination statutes, giving employees broader tools to challenge pay inequity. - Growing Accountability in Big Tech
Even without admissions of guilt, large settlements signal rising legal pressure on tech companies to audit pay structures and promotion pipelines.
What Happens Next?
The settlement still requires final court approval, after which payments will be distributed to eligible class members. Google will also remain under increased public and regulatory scrutiny regarding its compensation and promotion practices.
For employees and employers alike, the case serves as a reminder that pay equity is no longer just a human resources issue—it is a legal one, with significant financial and reputational consequences.
As similar lawsuits continue to emerge across the tech sector, the Google settlement may prove to be a benchmark for how courts, companies, and workers navigate the future of workplace equality.
