In a statement, the U.S. Department of Labor said Alphabet Inc’s Google will spend $3.8 million, including $2.6 million in back pay, to settle allegations that it unfairly passed over women and Asians for job openings and underpaid women.
The allegations stemmed from a routine compliance audit several years ago required by Google’s status as a supplier of technology to the federal government.
In a statement Google said, it was pleased that the matter has been resolved.
The Office of Federal Contract Compliance Programs had found “preliminary indicators” that Google had at times underpaid 2,783 women in its software engineering group in Mountain View, California, and the Seattle area for the period of 2014 to 2017. Investigators also found hiring rate differences that disadvantaged Asian candidates and women during the year ended Aug. 31, 2017, for software engineering roles in Sunnyvale, California, San Francisco, and Kirkland, Washington.
According to the settlement Google will set aside $1.25 million for pay adjustments for engineers in Mountain View, Kirkland, Seattle and New York over the next five years. Any unused funds will be spent on diversity efforts at Google.
Google already conducts annual pay audits and remains under public scrutiny for a workforce that does not reflect the country’s makeup in terms of race and gender.
In a statement Google said, “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.”