Google spokesman Chris Pappas says signing the agreement was in the best interest of everyone. "While we strongly believe in the equity of our policies and practices, after nearly five years of litigation, both sides agreed that resolution of the matter, without any admission or findings, was in the best interest of everyone."

The lawsuit had challenged Google’s pay and levelling processes, and plaintiffs believe these programs will help ensure women are not paid less than their male counterparts who perform substantially similar work, and that Google’s challenged levelling practices are equitable. Google says it's committed to fair and equal treatment of all employees when it comes to paying or hiring or levelling.

The plaintiffs included Kelly Ellis, Holly Pease, Kelli Wisuri, and Heidi Lamar -- all of these women worked for Google in California in various capacities since September 14, 2013.

As a next step, the court will now set a hearing date for preliminary settlement approval, which if approved will result in the third-party administrator issuing notice to the class members.

If the court grants final settlement approval, the third-party administrator will allocate settlement amounts based on an objective formula to each qualifying class member, says the statement.

Plaintiffs’ co-counsel Kelly Dermody says they believe this settlement advances gender equity at Google and will be precedent-setting for the industry.

"We are delighted that in this settlement agreement and order, Google is also affirming its commitment to be a leader in ensuring pay equity and equal employment opportunity for all of their employees," says Jim Finberg, another plaintiff co-counsel.

Companies like Google have been receiving end of employees who have accused them of disparities in pay against women and minorities, even though they claim improving working conditions and offering diversity at work is a prime priority for them. Before this in 2021, Google had agreed to pay $3.8 million to the US labour department for several accusations of discrimination against women and Asians.

Google to pay $118 mn

Google agrees to pay $118 mn to settle gender discrimination suit