Google revises wage and benefits policy for suppliers, staffing firms
CALIFORNIA, UNITED STATES — Tech giant Google announced significant changes to its labor policies affecting American suppliers and staffing firms, effectively rolling back its 2019 requirements for minimum wage and benefits.
This strategic shift comes as the company seeks alignment with broader industry standards and recent regulatory developments.
Policy rollback details
Previously, Google mandated that its suppliers and staffing firms pay their employees a minimum of $15 per hour and provide essential health benefits. However, these requirements have been rescinded.
A Google spokesperson explained that the changes are intended to clarify the company’s role concerning the employees of its suppliers.
“These updates bring us in line with other large companies and simply clarify that Google is not, and has never been, the employer of our suppliers’ employees,” the spokesperson stated.
Reaction to labor board rulings
This policy update follows a January ruling by the U.S. National Labor Relations Board (NLRB), which identified Google as a “joint employer” with staffing firm Cognizant Technology Solutions.
The NLRB’s decision was influenced by Google’s 2019 policy, which the board argued gave Google sufficient control over the workers to warrant a joint employer status.
This designation requires Google to bargain with the union representing those workers, a decision Google is currently appealing.
Legal and regulatory landscape
The labor board has attempted to enforce rules that would consider companies as employers of contract workers if they have indirect control over working conditions. However, these efforts faced a setback when a federal judge blocked such a rule from being implemented in March.
Despite the rollback, Google affirms its commitment to ethical labor practices.
“The company will continue to enforce a supplier code of conduct that requires vendors and staffing firms to provide safe working conditions and meet existing legal obligations,” the spokesperson added.
Most of Google’s suppliers are based in states where the minimum wage is already set at $15 or higher, which may mitigate some of the immediate impacts of the policy change.
