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Chronicles

The story behind the story

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Google agrees to pay $118M to settle a gender pay discrimination lawsuit with about 15,500 female employees, according to the law firms representing the women

Robert Burnson / Bloomberg :

Bloomberg Robert Burnson

Context & Ripple Effects

This settlement closes out the gender pay class action that four former employees won class status for in May 2021, when more than 10,800 women were seeking over $600M in damages. At $118M across roughly 15,500 employees, Google resolves it for well under that ask — but at a scale far beyond its earlier discrimination payouts, including the $2.5M deal covering 5,500+ female engineers and job applicants in 2021.

The arc matters: an age-discrimination settlement in 2019, two pay-and-hiring deals in 2021, then the Ulku Rowe jury verdict in 2023 established that juries, not just negotiators, would price Google's pay practices. This $118M agreement lands mid-arc, before the Rowe verdict showed trial risk was real.

First-order effects

  • About 15,500 current and former female Google employees become eligible for settlement payments, and Google retires its largest employment-discrimination liability to date without a trial.
  • Google's compensation teams face immediate scrutiny: the settlement terms and any monitoring provisions effectively audit how starting salaries and adjustments are set for women.

Second-order effects

  • The plaintiff firms behind the case gain a template and funding for pursuing comparable pay claims against other large tech employers, raising settlement pressure industry-wide.
  • Google's rivals now have a benchmark number: with jury verdicts like Rowe's on record, defendants facing similar class actions can expect plaintiffs to anchor demands near nine figures rather than the low millions of earlier deals.

Third-order effects

  • The cadence here — age (2019), gender hiring and pay (2021–2022), then a $50M racial bias settlement covering 4,000+ employees in 2025 — suggests recurring discrimination payouts are becoming a structural cost line for Google, pushing toward proactive pay audits and tighter internal equity controls as the cheaper alternative.
  • If the pattern holds, large tech employers shift from defending individual complaints to absorbing periodic mass class actions, which strengthens the market for pay-transparency tooling and invites state-level pay-reporting regulation.

The trend: Big Tech employment-discrimination disputes are consolidating into mass class actions with escalating settlement values, turning pay-equity lapses into a recurring, priced-in legal exposure rather than an episodic scandal.

Discussion

  • @tbqhwtf @tbqhwtf on x
    been working on this case for two years and more than ecstatic to see this outcome 🥺 https://news.bloomberglaw.com/ ...
  • @justkelly_ok @justkelly_ok on x
    If you're thinking about getting involved in a class action suit, fyi we first filed in 2017. I think I first met with my lawyers about it in 2016, but I'd have to check my records https://twitter.com/...
  • @derobertus Robertus de Bruin on x
    @amydiehl But isn't that less than half they were owed (15000 x $17000 = $255M). Based on this Google still saved $137M. Not the best message to other corporations 🤔
  • @amydiehl Amy Diehl, Ph.D. on x
    Google agrees to pay $118M to 15,000 female employees who were paid $17,000 less than men with the same job titles. Notably this case was filed in California state court, for violating CA's Equal Pay Act, and the court allowed the women to file as a class. https://deadline.com/..…
  • @justkelly_ok @justkelly_ok on x
    Some big news - we've reached a settlement in our class action suit! I'm really proud that we got $118 million for the class, and that Google agreed to change a lot of things with the help of outside specialists. See the full press release here: https://www.lieffcabraser.com/ ...
  • @leilaluheshi Dr Leila Luheshi on x
    This week in exhausting being a woman news... Why it's so important that we talk to each other about pay, and support each other to always demand more than we're offered. Demand what we are worth. Because it doesn't seem like it's ever going to be offered to us without a fight. h…
  • @amydiehl Amy Diehl, Ph.D. on x
    The plaintiffs got injunctive relief in the settlement too; Google has to fix its practices. “An independent third party expert will analyze Google's leveling-at-hire practices & an independent labor economist will review Google's pay equity studies.” https://www.lieffcabraser.co…
  • @moinqueens Margarita on x
    They've fallen long way from “don't be evil” https://twitter.com/...
  • @amydiehl Amy Diehl, Ph.D. on x
    Stronger legal equal pay protections and allowing women to file multiple-plaintiff and class action suits is key to ensuring equal pay. US federal courts have routinely favored corporations, disallowing women to file joint suits (ex: 2011's Wal-mart Stores Inc. vs. Dukes).
  • @gulfnewsbiz @gulfnewsbiz on x
    The Google settlement involves women in 236 different job titles, according to the law firms. Similar lawsuits against Twitter Inc. and Microsoft Corp. have failed to gain class-action status. https://gulfnews.com/...
  • @mcbyrne @mcbyrne on x
    [Image of a banner flying in the sky that reads: “Congratulations to the Stanford graduates boycotting working at Facebook and Google"]