Alphabet Inc’s Google has announced changes to its labor policies, removing the requirement for U.S. suppliers and staffing firms to pay employees a minimum of $15 per hour and provide health insurance and benefits.
This adjustment is a response to evolving labor laws and potential challenges in union negotiations.
The decision to reverse the 2019 policy, along with other actions such as limiting access to internal systems for temporary workers and vendors, aims to align Google with shifting global labor regulations.
A spokesperson clarified that Google has never considered itself the direct employer of supplier employees and aims to meet industry standards.
The change follows a ruling by the U.S. National Labor Relations Board, which identified Google as a “joint employer” of workers from Cognizant Technology Solutions, citing the 2019 policy as evidence of Google’s influence over these workers, despite not directly employing them. Google is disputing this ruling.
Google (Via Joshua Keel/Getty Images)
Labor laws are evolving to make it more difficult for companies to avoid negotiating with temporary and contract workers.
A recent rule by the National Labor Relations Board, intended to classify companies as employers of contract workers if they exert indirect control over working conditions, faces legal challenges after being blocked by a federal judge in March.
Google reaffirms its commitment to ensuring safe working conditions and complying with legal requirements through its supplier code of conduct.
While most of its suppliers operate in states where the minimum wage is at least $15 per hour, Google’s adjustment reflects its need to adapt to changing regulatory environments and labor dynamics.
