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Google will pay $118 million and open some of its practices to independent review to settle a class-action lawsuit that accused the company of consistently paying women less than their male colleagues.
The lawsuit covers 15,550 female employees working in California since 2013, notes a statement from the law firm representing the plaintiffs. A judge will review the settlement in a preliminary hearing on June 21.
“While we strongly believe in the equity of our policies and practices, after nearly five years of litigation, both sides agreed that the resolution of the matter, without any admission or findings, was in the best interest of everyone,” a Google spokesperson said in a statement provided to Fortune, outlining that Google is not admitting fault as part of the settlement.
As part of the agreement, however, Google is allowing third parties to examine how it sorts new recruits into levels upon hiring—a practice that was at the heart of the class action suit against the company.
“We're very happy to have an advisor look at these processes and make recommendations for future improvement,” the spokesperson said.
Google's sorting levels
Google places new hires on different levels depending on experience—which can be difficult to determine for employees that transfer over from other companies. Plaintiffs in the lawsuit argued that “Google assigns...
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