Google will pay USD 2.6 million to over 5,500 employees and past job applicants to resolve allegations that it discriminated against female engineers and Asians in California and Washington State.

The settlement announced Monday closes a 4-year-old case that the Labour Department brought as part its periodic reviews of the pay practices at federal government contractors such as Google.

That inquiry resulted in accusations that during a period spanning from 2014 to 2017, Google paid female engineers less than men in similar positions. The pay incongruities were cited in several Google offices in its home state of California, as well as at locations in Seattle and Kirkland, Washington.

Google had severely contested the allegations as unfounded before reaching the settlement without acknowledging any wrongdoing.

"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,'' Google said Monday.

 Nevertheless, the settlement will require Google to pay USD 1.35 million to more than 2,500 of its female engineers to compensate them for past discrimination alleged by the Labour Department. Another USD 1.23 million is earmarked for more than 1,700 women and Asians who unsuccessfully applied for engineering jobs at Google.

The settlement also requires Google to contribute USD 250,000 annually for five years to create a reserve to cover any necessary adjustments still needed in the future.

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