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Google outlines salary methods as Labor Department investigates gender discrimination

This just doesn’t add up.


Phillip Tracy


Google is adamant that the procedures it uses for determining an employee’s salary do not discriminate against women, despite allegations from the U.S. Department of Labor. Last week, the government agency said it found “systematic compensation disparities against women pretty much across the entire workforce,” during a routine compliance probe. The agency then sued Alphabet for not disclosing salary information.

The Mountain View, California, giant responded by outlining the methodology it uses for figuring out how much its workers get paid. It claims the formula doesn’t allow for pay disparity between men and women.

“Our annual analysis is extremely scientific and robust,” Google said a blog post.

They clarified that earnings are based on an employee’s role, job level, performance rating, and location. Importantly, analysts who determine these bonuses do not know the gender of the worker. The company claims its model defends specifically against the allegations it now faces by analyzing wages and making sure there is no pay disparity. Google looked at wages across 52 jobs last year, and didn’t find any issues.

A spokesman for the Labor Department denied comment about Google’s claims for how it handles compensation, according to the Wall Street Journal. We will have to wait for the completion of the investigation to determine whether the Labor Department’s assessment was false, or if Google’s seemingly impenetrable methods let it down.

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