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Google reached an agreement with the U.S. Department of Labor (DOL) to settle allegations that it engaged in systemic compensation and hiring discrimination at its facilities in the States of California and Washington.

During a routine compliance evaluation, Labor officials found pay disparities affecting female employees in software engineering positions at Google's facilities in Mountain View, Seattle, and Kirkland

They also discovered hiring rate differences that is unfair for females and Asian applicants for software engineering positions in the tech giant's facilities in San Francisco, Sunnyvale, and Kirkland.

In a statement, the DOL's Office of Federal Contract Compliance Programs Director Jenny R. Yang said, “Pay discrimination remains a systemic problem. Employers must conduct regular pay equity audits to ensure that their compensation systems promote equal opportunity."

Terms of the settlement between Google and the Labor Department

Under the terms of the settlement agreement, Google agreed to pay $3,835,052 tp more than 5500 current employees and job applicants.

The payment included $1,353,052 in back pay and interest to 2,565 female employees in engineering positions subject to pay discrimination.  It also included $1,232,000 in back pay and interest to 1,757 female and 1,219 Asian applicants for software engineering positions not hired.

Additionally, the tech giant agreed to allocate a cash reserve of at least  $1,250,000 in pay-equity adjustments for the next 5 years for U.S. employees in engineering positions at its locations in Mountain View, Kirkland, Seattle, and New York.

Furthermore, Google provided job opportunities to  51 female and 17 Asian applicants for software engineering positions.

Moreover, the tech giant agreed to proactively improve future compliance policies. It will review its current procedures and practices related to hiring, compensation, and conduct analyses. It will implement corrective action to ensure non-discrimination.

Jane Suhr, the Regional Director of the Office of Federal Contract Compliance Programs in San Francisco commented, “The U.S. Department of Labor acknowledges Google’s willingness to engage in settlement discussions and reach an early resolution,"

“The technology industry continues to be one of the region’s largest and fastest-growing employers. Regardless of how complex or the size of the workforce, we remain committed to enforcing equal opportunity laws to ensure non-discrimination and equity in the workforce," added Suhr.

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