Google Pays California, Workers Largest PAGA-Only Settlement

Google Inc. workers and the state of California will share a $27 million settlement that ends litigation accusing the Silicon Valley giant of muzzling workers.

Judge Ethan Schulman of the San Francisco Superior Court approved the settlement in the lawsuit by former and current employees alleging Google and staffing agency Adecco USA Inc. barred them from disclosing wage information, reporting safety and discrimination problems, and even writing novels.

The workers sued under the California Private Attorneys General Act, which allows employees to step into the state’s shoes and sue for labor violations. They alleged restraints of competition, whistleblowing, and freedom of speech violations. An appeals court revived their lawsuit, reversing a trial court ruling that the National Labor Relations Act preempted the claims.

The state Labor and Workforce Development Agency told the court it’s “the largest PAGA-only settlement, and second largest civil recovery penalty, in a PAGA action to date.” The settlement “constitutes one of the most significant recoveries under PAGA.”

“Overall, this settlement has achieved significant labor law enforcement in inducing Google to change its policies which allegedly violated fundamental rights of employees to converse about their compensation and conditions of employment and including a notice to employees of their rights under the allegedly violated statutes,” the LWDA said in a filing. “These provisions of law protect fundamental rights rooted in public policy that the State has a strong interest in enforcing.”

The settlement covers individuals who worked at Google and Alphabet from Oct. 16, 2015, to Sept. 15, 2023, excluding temporary employees, vendors, or contractors and those of senior vice president positions or higher.

The court on Monday granted attorneys’ fees of $9 million to plaintiffs’ counsel Outten & Golden LLP and Baker Curtiz & Schwartz PC. Named plaintiffs John Doe and DeWayne Cassel each will receive $20,000 in incentive awards with $10,000 each to Paola Correa and David Gudeman.

The net $17.66 million settlement will be split with 75% going to the state LWDA and 25% to the class. Each of the 96,939 aggrieved employees receives a fixed payment of $20 and a max payment of $79 depending on pay periods, the plaintiffs said in a supplemental filing. The settlement is effective Feb. 3.

A separate Dec. 12 hearing is scheduled in Correa’s motion to lift her PAGA and unfair competition claims against Adecco. Correa on Feb. 14, 2017, submitted to the LWDA a PAGA notice alleging, among other things, that Adecco’s non-disclosure agreements, policies, and practices violated the Labor Code. Doe in March 2017 added Correa as a plaintiff. Correa and Adecco agreed to end arbitrating her individual PAGA claim, which is now before the Superior Court, plaintiffs told the court.

Paul Hastings LLP represents Google. Jackson Lewis PC represents Adecco.

The case is Doe v. Google, Inc., Cal. Super. Ct., No. CGC-16-556034, order signed 12/4/23.