Google has agreed to pay a total of $3.8 million after the U.S. Department of Labor investigated allegations that the company underpaid female software engineers and overlooked female and Asian applicants for engineering positions.
In a settlement, the company says it will pay $1,353,052 in back pay and interest to 2,565 female engineers. It will also pay $1,232,000 in back pay and interest to 1,757 female engineering applicants and 1,219 Asian engineering applicants for “engineering positions not hired,” according to The Verge.
Google has also reportedly set aside $1,250,000 for pay-equity adjustments over the next five years for engineers in Mountain View, Seattle, Kirkland and New York, ABC News reported.
“Pay discrimination remains a systemic problem,” Jenny Yang, programs director at the Office of Federal Contract Compliance Programs, said in a statement. “Employers must conduct regular pay equity audits to ensure that their compensation systems promote equal opportunity.”
Employees from Google’s offices in Mountain View, Seattle and Kirkland were reportedly affected by the pay disparities. It was also discovered that female and Asian applicants were at a disadvantage due to the hiring rate differences of software engineers at the company’s outposts in San Francisco, Sunnyvale and Kirkland.
Google said in another statement that they are pleased to have resolved the issue with their employees.
“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,” the company said. “For the past eight years, we have run annual internal pay equity analysis to identify and address any discrepancies. We’re pleased to have resolved this matter related to allegations from the 2014-2017 audits and remain committed to diversity and equity and to supporting our people in a way that allows them to do their best work.”
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