Google faces lawsuit for paying $ 16,794 less than men for women

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  • A former Google employee has been granted class action status for a gender equity lawsuit against the company.
  • The four women said Google pays female staff nearly $ 17,000 less per year than men.
  • The claimants represent 10,800 women who say Google pays women less than men for the same work.
  • See more stories on the Insider business page.

Google suffered a setback Thursday as a San Francisco state judge granted class-action status to a lawsuit over unequal pay between men and women for the same work, Bloomberg first reported.

The lawsuit was first brought by four former Google workers in 2017. The women claim that Google violated California’s equal pay law “by paying female employees less than what Google pays employees. men doing substantially similar work “.

A previously leaked analysis seen by Bloomberg showed the case sought more than $ 600 million in damages.

Women represent around 10,800 women employed by Google who say the company pays more men to do the same work, according to a Filing in court in July. The court record said the search engine company paid women about $ 16,794 less per year than “the man in a similar situation.”

“Google paid women less base salary, smaller bonuses and less stock than men in the same job code and location,” the July filing said.

“We strongly believe in the fairness of our policies and practices,” a Google spokesperson told Insider. “Over the past eight years, we have conducted a rigorous pay equity analysis to ensure that salaries, bonuses and stock awards are fair. If we see any differences in the proposed compensation, including between men and women, we make upward adjustments to remove them before new compensation takes effect. In 2020 alone, we made upward adjustments for 2,352 employees, in almost every demographic category, for a total of $ 4.4 million. We also undertake rigorous analysis to ensure fairness in role leveling and performance ratings. “

Kelly Dermody, a lawyer representing the women, said in an email to Bloomberg that the next step is to bring the case to trial, which could take place in 2022.

“This is an important day for women at Google and in the tech industry, and we’re very proud of our brave customers for leading the way,” said Dermody. “This ordinance shows that it is essential for companies to prioritize paying women fairly rather than spending money fighting them in litigation.”

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