Google agrees to $28 million settlement over allegations of pay disparities

Google has agreed to pay $28 million to settle a class-action lawsuit that accused the tech giant of favoring white and Asian employees over workers from Hispanic, Latino, Indigenous, and other minority backgrounds.

Allegations of unequal pay and promotions

The lawsuit, led by former Google employee Ana Cantu, claimed that the company systematically placed white and Asian employees in higher job levels—resulting in better pay and career advancement—while limiting opportunities for minority workers. Cantu, who identifies as Mexican and racially Indigenous, alleged that despite seven years of exemplary performance in Google’s people operations and cloud departments, she remained stuck in the same job level while her peers advanced.

The lawsuit also alleged that Google withheld raises and promotions from employees who challenged these disparities, violating the California Equal Pay Act.

Settlement details

Last week, Judge Charles Adams of the Santa Clara County Superior Court granted preliminary approval of the settlement, calling it “a good result for the class.” The agreement covers at least 6,632 current and former Google employees in California who worked at the company between February 15, 2018, and December 31, 2024.

After deducting legal fees and other costs, the net settlement amount stands at $20.4 million. A final hearing to approve the settlement is scheduled for September 2025.

Google maintains its stance

While agreeing to the settlement, Google denied any wrongdoing. A company spokesperson stated:

“We continue to disagree with the allegations that we treated anyone differently, and remain committed to paying, hiring, and leveling all employees fairly.”

The case initially sought to include Black employees, but their claims were removed from the class-action suit earlier this month following discussions between Google and Cantu’s legal team.

Cantu’s case underscores the challenges underrepresented employees face in securing fair treatment, even in organizations that publicly champion diversity initiatives.

The final approval of the settlement in September will determine how the funds are distributed among affected employees, marking a significant moment in the ongoing conversation about equity in Silicon Valley.