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The US Department of Labor (DOL) on Monday 1-2-21 announced it has reached an agreement with Google LLC to settle claims of “systemic compensation and hiring discrimination” at the tech giant’s California and Washington campuses. Google will pay over $3.8 million to nearly 6,000 current employees and job candidates.

Following routine compliance evaluations at Google facilities in Mountain View, Seattle, and Kirkland, Washington, the agency’s Office of Federal Contract Compliance Programs cataloged “pay disparities affecting female employees in software engineering positions. At Google’s San Francisco, California, campus the office identified hiring rate differences that disadvantaged female and Asian applicants for similar software engineering positions.

The DOL outlined the terms of the settlement in an 87-page early resolution conciliation agreement. Over the course of the next five years, DOL is mandating that Google allocate a “cash reserve” of at least $1.25 million in pay-equity adjustments for the company’s largest nation-wide campuses. Additionally, DOL ordered Google to pay $3,835,052 to settle the agency’s discrimination allegations

“Under the terms of the early resolution conciliation agreement, Google agreed to the following: + To pay $3,835,052 to resolve OFCCP’s allegations, namely $1,353,052 in back pay and interest to 2,565 female employees in engineering positions subject to pay discrimination; and $1,232,000 in back pay and interest to 1,757 female and 1,219 Asian applicants for software engineering positions not hired. + Allocate a cash reserve of least $1,250,000 in pay-equity adjustments for the next 5 years for U.S. employees in engineering positions at Google’s Mountain View, Kirkland, Seattle and New York establishments, locations that house approximately 50 percent of Google’s engineering employees nationwide. Google has provided job opportunities to 51 female and 17 Asian applicants for software engineering positions.

According to the settlement, Google has agreed to “evaluate its hiring process for software engineering positions and ensure equal access to opportunities for all eligible and willing applicants and employees.” The agreement also mandates Google to assess its recruitment, screening, and interviewing processes for compliance with Executive Order 11246–an order prohibiting federal contractors from discriminating in employment decisions “on the basis of race, color, religion, sex, sexual orientation, gender identity or national origin.”

Google has agreed to provide DOL with annual progress reports on its evaluations, policies, procedures, proposed actions, and training practices.