In another blow to Google’s corporate reputation, the tech giant has agreed to a $50 million settlement with nearly 4,000 current and former Black employees who alleged systemic racial workplace discrimination.

The lawsuit, originally brought by former Google recruiter April Curley, claimed the company maintained a “racially biased corporate culture” where Black employees were consistently paid lower wages and denied career advancement opportunities. Despite agreeing to the settlement, Google maintains its innocence, stating they “strongly disagree with the allegations that we treated anyone improperly”.

This legal action is part of a growing pattern of workplace discrimination challenges facing the Mountain View-based company. Just last month, Google settled a $28 million lawsuit regarding pay disparities for Latino, Indigenous, and Pacific Islander employees. In 2022, they also paid $118 million in a class-action suit addressing gender discrimination.

The $50 million settlement, which still requires judicial approval, represents more than just a financial penalty. It highlights ongoing systemic issues of racial inequity within the tech industry’s corporate structures. As part of the agreement, Google has committed to not forcing employees into mandatory arbitration for employment disputes until 2028 and pledged to continue analyzing pay structures for unexplained racial disparities.

While the settlement might seem like a significant sum, it represents a small fraction of Google’s massive annual revenue. The real impact lies in the public acknowledgment of workplace discrimination and the potential for meaningful organizational change.

This legal resolution serves as a critical reminder that even industry-leading tech companies must be held accountable for creating inclusive, equitable work environments that provide equal opportunities for all employees, regardless of race or background.