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Google illegally underpaid thousands of workers

theguardian.com

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Re: Google illegally underpaid thousands of workers

#11

Post by toomuchtodo »

notJim wrote: post #8

> A whistleblower represented by Whistleblower Aid has filed a complaint about the alleged violations with the US Securities and Exchange Commission. Nice.

Hopefully they're getting paid [1] for their efforts!

[1] https://www.sec.gov/whistleblower

"The Commission is authorized by Congress to provide monetary awards to eligible individuals who come forward with high-quality original information that leads to a Commission enforcement action in which over $1,000,000 in sanctions is ordered. The range for awards is between 10% and 30% of the money collected."

From this post:

"While international labor law is not under the purview of the SEC, the complaint alleges that Google’s failure to disclose the pay parity liabilities, which it estimates could amount to $100m, constitute material misstatements in its quarterly financial reports, a violation of US securities law."

“The disclosure makes it clear that Google hasn’t just broken labor laws around the world, but has misled investors about major legal and financial liabilities,” said John Tye, founder and chief disclosure officer of Whistleblower Aid. “The lawful, anonymous whistleblower disclosure is a critical step toward ensuring that Google is held to account. We urge the SEC to bring an enforcement action against Google, and protect the rights of investors to receive complete and accurate information.”

Re: Google illegally underpaid thousands of workers

#12

Post by bko »

0des wrote: post #10
threatofrain wrote: post #3

> Google executives have been aware since at least May 2019 that the company was failing to comply with local laws in the UK, Europe and Asia that mandate temporary workers be paid equal rates to full-time employees performing similar work, internal Google documents and emails reviewed by the Guardian show. > But rather than immediately correct the errors, the company dragged its feet for more than two years, the doc…

What is the mechanism by which an entity that has the resources to spend on wrist-slaps is prevented from just continuing the behavior forever? I notice this a lot, and it feels like there are these opportunities everywhere that are exploited by corporations who know they'll skate every time with minimal financial impact.

The "wrist slaps" will make up for the entire amount that the offending party short-changed the workers and penalties on top of that not to mention the cost associated with litigation.

So it's not economical for the offending parties to continue such behavior.

Re: Google illegally underpaid thousands of workers

#13

Post by willcipriano »

bko wrote: post #9
willcipriano wrote: post #5

Sounds like they were caught red handed, mens rea and all. Any chance this ends up with serious repercussions like prison time?

> Civil law vs. criminal law: Punishment > Another important distinction between civil and criminal law is the type of penalty paid for being found guilty. In a criminal case, if the individual charged with a crime loses the case, they’re likely facing incarceration or some type of probation. For civil cases, the resolution to a case doesn’t result in the “losing” party going to jail. Often the judgement results in a…

> Section 2 makes it an offence to commit fraud by false representation in any form. For a representation to be false, the representation being made must be wrong or misleading, and the person making it must know that it is, or might be, wrong or misleading.[0]

I think it is reasonable to presume that by paying it's contractors, Google and by virtue it's executive team was representing to said contractor that they were being paid according to the labor laws. Google executives knew that this was not the case, and withheld that information, likely in order to increase their own personal bonuses. That would seem to me to be theft by deception, illegal in every nation on earth as far as I can tell.

That's not even to mention the shareholders, who were defrauded as the company financials do not accurately reflect their labor liabilities. This in turn may have increased the value of Google stock, that then the people committing fraud around wages receive as a considerable portion of their compensation.

If knowingly lying for personal gain and costing potentially tens of thousands of people life changing amounts of money isn't fraud, what is?

[0]https://www.gov.uk/government/publications/the-fraud-act-200...

Re: Google illegally underpaid thousands of workers

#14

Post by Ansil849 »

bko wrote: post #12
0des wrote: post #10

Earlier quoted context omitted.

What is the mechanism by which an entity that has the resources to spend on wrist-slaps is prevented from just continuing the behavior forever? I notice this a lot, and it feels like there are these opportunities everywhere that are exploited by corporations who know they'll skate every time with minimal financial impact.

The "wrist slaps" will make up for the entire amount that the offending party short-changed the workers and penalties on top of that not to mention the cost associated with litigation. So it's not economical for the offending parties to continue such behavior.

> So it's not economical for the offending parties to continue such behavior.

Of course it is. The only needed change is to take adequate care to not leave incriminating evidence such as emails around.

Re: Google illegally underpaid thousands of workers

#15

Post by colechristensen »

0des wrote: post #10
threatofrain wrote: post #3

> Google executives have been aware since at least May 2019 that the company was failing to comply with local laws in the UK, Europe and Asia that mandate temporary workers be paid equal rates to full-time employees performing similar work, internal Google documents and emails reviewed by the Guardian show. > But rather than immediately correct the errors, the company dragged its feet for more than two years, the doc…

What is the mechanism by which an entity that has the resources to spend on wrist-slaps is prevented from just continuing the behavior forever? I notice this a lot, and it feels like there are these opportunities everywhere that are exploited by corporations who know they'll skate every time with minimal financial impact.

Penalties just have to be set correctly.

If I don’t pay a parking meter I’m likely to lose up to 100x as much as I saved… if Google doesn’t pay its employees…

Re: Google illegally underpaid thousands of workers

#16

Post by chitowneats »

bko wrote: post #12
0des wrote: post #10

Earlier quoted context omitted.

What is the mechanism by which an entity that has the resources to spend on wrist-slaps is prevented from just continuing the behavior forever? I notice this a lot, and it feels like there are these opportunities everywhere that are exploited by corporations who know they'll skate every time with minimal financial impact.

The "wrist slaps" will make up for the entire amount that the offending party short-changed the workers and penalties on top of that not to mention the cost associated with litigation. So it's not economical for the offending parties to continue such behavior.

This assumes a 100% success rate of catching such behavior.

Re: Google illegally underpaid thousands of workers

#17

Post by Barrin92 »

0des wrote: post #10
threatofrain wrote: post #3

> Google executives have been aware since at least May 2019 that the company was failing to comply with local laws in the UK, Europe and Asia that mandate temporary workers be paid equal rates to full-time employees performing similar work, internal Google documents and emails reviewed by the Guardian show. > But rather than immediately correct the errors, the company dragged its feet for more than two years, the doc…

What is the mechanism by which an entity that has the resources to spend on wrist-slaps is prevented from just continuing the behavior forever? I notice this a lot, and it feels like there are these opportunities everywhere that are exploited by corporations who know they'll skate every time with minimal financial impact.

the mechanism is turning the heat up to 11. Whatever money they saved, 20x it and fine them. Do it for every minor infraction until they comply. Drag their executives in front of a camera and make them issue a public apology. What are they gonna do, drop out of the entire European or Asian market?

The problem is just lack of political willingness to reign them in, nothing else.

Re: Google illegally underpaid thousands of workers

#18

Post by burlesona »

0des wrote: post #10
threatofrain wrote: post #3

> Google executives have been aware since at least May 2019 that the company was failing to comply with local laws in the UK, Europe and Asia that mandate temporary workers be paid equal rates to full-time employees performing similar work, internal Google documents and emails reviewed by the Guardian show. > But rather than immediately correct the errors, the company dragged its feet for more than two years, the doc…

What is the mechanism by which an entity that has the resources to spend on wrist-slaps is prevented from just continuing the behavior forever? I notice this a lot, and it feels like there are these opportunities everywhere that are exploited by corporations who know they'll skate every time with minimal financial impact.

Agreed. Executives need to start getting personal punishment if we want corporate behavior to change.

Alternatively, start issuing fines such that it’s X percent of revenue plus Y percent of salary from all employees. Even a fine of 1% of annual pay would light a big angry fire under most employees, and perhaps incentivize them to stand up to the execs and refuse to follow illegal or unethical decisions.

Re: Google illegally underpaid thousands of workers

#19

Post by dodobirdlord »

willcipriano wrote: post #13
bko wrote: post #9

Earlier quoted context omitted.

> Civil law vs. criminal law: Punishment > Another important distinction between civil and criminal law is the type of penalty paid for being found guilty. In a criminal case, if the individual charged with a crime loses the case, they’re likely facing incarceration or some type of probation. For civil cases, the resolution to a case doesn’t result in the “losing” party going to jail. Often the judgement results in a…

> Section 2 makes it an offence to commit fraud by false representation in any form. For a representation to be false, the representation being made must be wrong or misleading, and the person making it must know that it is, or might be, wrong or misleading.[0] I think it is reasonable to presume that by paying it's contractors, Google and by virtue it's executive team was representing to said contractor that they we…

Well, everything is securities fraud, so why not?

https://www.bloomberg.com/opinion/articles/2019-06-26/everyt...

https://www.bloomberg.com/opinion/articles/2021-06-22/everyt...

Re: Google illegally underpaid thousands of workers

#20

Post by heisenbit »

threatofrain wrote: post #3

> Google executives have been aware since at least May 2019 that the company was failing to comply with local laws in the UK, Europe and Asia that mandate temporary workers be paid equal rates to full-time employees performing similar work, internal Google documents and emails reviewed by the Guardian show. > But rather than immediately correct the errors, the company dragged its feet for more than two years, the doc…

The crux is that one needs to be willing to pierce through the pretend veil of separation:

> “the correct outcome from a compliance perspective” and could place the staffing companies it contracts with “in a difficult position, legally and ethically”.

The systemic abuse of subcontracting companies to undermine the rule of law by these large corporations needs to stop. But it only will if executives at Google would face the same consequences as executives at the subcontractors (which tend to escape criminal punishments as well by hiding behind multiple shells and false ids).

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