In a bid to settle the allegations of biases on the part of Google in hiring and payments, the internet giant has agreed to pay $3.8 million, including $2.6 million in back pay.
The US department of Labour has alleged that Alphabet Inc’s Google underpaid women and unfairly passed over women and Asians for job openings.
The allegations stemmed from a routine compliance audit several years ago required by Google’s status as a supplier of technology to the federal government.
Jenny Yang, head of federal department said, “Pay discrimination remains a systemic problem.”
Most of the settlement money will go 2,565 women employees in engineering posts as back pay and internet, and nearly 3,000 to those women or candidates of Asian descent who were not given the engineering jobs.
The “preliminary indicators” examined by the Office of Federal Contract Compliance Programs claims that between 2014 to 2017 Google had at times underpaid nearly 2,783 women in its software engineering group in Mountain View, California, and the Seattle area in the next five years.
However, the company has expressed that it is pleased to have resolved the issue.
Google’s spokesperson was quoted as saying, “We believe everyone should be paid based upon the work they do, not who they are, and invest heavily to make our hiring and compensation processes fair and unbiased.”
As part of settlement, Google has also agreed to review its policies, procedures and practices related to hiring and compensation.