Google agreed to pay $ 3.8 billion in fines from the US Department of Labor for systematic damages and claims of discrimination. The inequalities of payments and offers that the Department’s Federal Bureau of Contract Compliance Programs discovered during a routine audit a few years ago cost the tech giant dearly.
The U.S. Department of Labor published the deal on its website
The first time that technology giant Google made payment and offer inequality was discovered between 2014 and 2017 that it was paying low wages to female software engineers in Mountain View and Washington offices.
The Department of Compliance Programs also discovered that Google offered lower year-round recruitment rates for female and Asian software engineering job applicants at its San Francisco, Sunnyvale and Kirkland offices, which ended on August 31, 2017.
As a result of the incident that lasted for years, the US Department of Labor announced the decision on its website and announced the terms of the agreement.
According to the agreement reported by the U.S. Department of Labor, Google will pay $ 1.35 million in reimbursement and interest to 2,565 female engineers, and will pay $ 528 to each victim. At the same time, the technology company will pay $ 1.23 million to 1,757 women and 1,219 Asian software engineering applicants who are affected by this situation and are not hired by the company.
With the remaining $ 1.25 million, Google will allocate free equity for engineers in the US over the next five years, especially for the locations determined by the US Department of Labor, thus paying a total penalty of $ 3.8 billion.
In addition, based on this penalty, Google is expected to review its policies and practices regarding recruitment and compensation and make new revisions to ensure non-discrimination.
At the same time, Google made a statement to TechCrunch on the subject, evaluating this situation as follows;
“We believe everyone should be paid for what they do, not who they are, and we invest heavily in making our recruiting and remuneration processes fair and impartial. For the past eight years, we have conducted annual internal fee equity analysis to identify and correct any discrepancies. We are delighted to address this issue with allegations in the 2014-2017 audits and to continue to adhere to diversity and equality and to support our employees in ways that ensure they do their best. ”
In addition, Jane Suhr, Regional Director of the San Francisco Federal Contract Compliance Programs Office, said:
“The US Department of Labor acknowledges Google’s willingness to participate in resolution talks and reach an early solution. The tech industry continues to be one of the region’s largest and fastest growing employers. “No matter how complex or how complex the workforce is, we remain committed to implementing equal opportunity laws to ensure equality and non-discrimination in the workforce.”