Google Settles $28 Million Racial Pay Discrimination Lawsuit

Preliminary Approval Granted in California Court

Google, a subsidiary of Alphabet (NASDAQ:GOOGL), has agreed to pay $28 million to settle a class action lawsuit alleging racial pay discrimination that favored white and Asian employees over others, including Hispanic, Latinx, Indigenous, Native American, American Indian, Native Hawaiian, Pacific Islander, and Alaska Native workers. This landmark settlement, which received preliminary approval from Judge Charles Adams of the Santa Clara County Superior Court in California, addresses claims that Google systematically paid white and Asian employees more and placed them on higher career tracks, even when performing identical roles. The lawsuit, filed under case number 21CV392049 and titled Cantu v Google LLC et al, represents at least 6,632 employees who worked at Google in California between February 15, 2018, and December 31, 2024. Judge Adams praised the settlement as fair, reasonable, and a strong outcome for the class, with a final approval hearing scheduled for September 11, 2025.

The lead plaintiff, Ana Cantu, who identifies as Mexican and racially Indigenous, spearheaded the case, claiming she faced significant disparities during her seven-year tenure at Google. Cantu worked in the company’s people operations and cloud departments, delivering what she described as exemplary performance, yet she remained stagnant at the same job level. Meanwhile, her white and Asian counterparts reportedly received additional compensation and promotions for similar work. According to Cantu, Google’s practices extended beyond her individual experience, with the company allegedly assigning higher job levels to white and Asian employees while denying raises and career advancement to those who raised concerns. She argued that these actions violated the California Equal Pay Act, a state law designed to ensure equitable pay across racial and gender lines. Cantu departed Google in September 2021, but her lawsuit has since gained traction, spotlighting broader issues of racial equity in the tech industry.

Under the terms of the settlement, the total $28 million payout includes $20.4 million in net proceeds for the affected employees after accounting for $7 million in deductions. These deductions cover legal fees, penalties linked to Cantu’s claim under California’s Private Attorneys General Act, and additional administrative costs. The settlement’s scope was refined earlier this month when Cantu’s legal team agreed to exclude Black employees from the class, a modification Google had requested during negotiations. This change narrowed the focus to specific racial and ethnic groups, potentially influencing how future claims are structured. Google spokesperson Courtenay Mencini confirmed the settlement, stating that the company disputes the allegations of racial pay discrimination. Mencini emphasized Google’s commitment to equitable hiring, pay, and career leveling practices, suggesting the settlement was a pragmatic move rather than an admission of wrongdoing.

This racial pay discrimination lawsuit against Google adds to a growing list of legal challenges the tech giant has faced over workplace equity. In 2022, Google settled a separate $118 million gender pay disparity lawsuit (Ellis v. Google LLC), indicating a pattern of scrutiny over its compensation practices. The current case, however, shifts the focus to racial dynamics, a topic of increasing importance in Silicon Valley as companies grapple with diversity, equity, and inclusion initiatives. The allegations paint a picture of systemic bias, where job levels, a key determinant of pay and promotion at Google, were allegedly manipulated to favor certain racial groups. For instance, Cantu’s claims suggest that even when employees performed identical tasks, white and Asian workers were slotted into higher tiers, unlocking better pay and opportunities, while others were left behind.

The financial breakdown of the settlement reveals a complex picture. With $20.4 million distributed among at least 6,632 employees, the average payout per person could be modest, though exact figures depend on individual circumstances and are not yet public. The $7 million in deductions highlights the significant role of legal and administrative costs in such cases, a common feature in class action lawsuits. For affected employees, this settlement offers a measure of relief, but it also raises questions about accountability and whether the payout fully addresses years of alleged inequity. The exclusion of Black employees from the class, agreed upon this month, adds another layer of intrigue. While the decision streamlined the case, it may signal strategic concessions by both sides, potentially leaving other groups to pursue separate claims.

Beyond the courtroom, this Google racial pay discrimination settlement underscores broader industry challenges. Tech giants like Google have long touted their diversity efforts, yet lawsuits like this one expose gaps between stated values and employee experiences. The California Equal Pay Act, invoked by Cantu, has become a powerful tool for workers challenging pay disparities, and its application here could inspire similar actions elsewhere. Judge Adams’ preliminary approval signals confidence in the settlement’s fairness, but the upcoming September 11, 2025, hearing will be pivotal. If finalized, the agreement could set a precedent for how racial pay discrimination claims are resolved in the tech sector, influencing corporate policies and employee advocacy.

For those seeking deeper insight, the case’s progression offers valuable lessons. The Santa Clara County Superior Court’s public portal and platforms like UniCourt provide limited access to filings, but news reports have filled in critical details. Google’s denial of the allegations, paired with its willingness to settle, reflects a common corporate strategy: resolving disputes without conceding fault. Meanwhile, Cantu’s story resonates with many who feel overlooked in high-stakes industries, making this settlement a focal point for discussions on workplace fairness. As the final hearing approaches, stakeholders will watch closely to see how this chapter in Google’s legal saga unfolds, potentially shaping the future of racial equity in tech.