Google, a tech giant and subsidiary of Alphabet Inc., has announced that it will no longer require its suppliers and staffing firms in the United States to pay their employees a minimum wage of $15 per hour or provide health insurance and other benefits.
The decision has been made to align Google with evolving labor regulations in the United States and globally, specifically those related to contingent workers.
Initially implemented in 2019, the policy played a role in the U.S. National Labor Relations Board’s January ruling that deemed Google a “joint employer” of workers provided by Cognizant Technology Solutions, a staffing firm.
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- Google reverses the $15 minimum wage and benefits requirements for U.S. suppliers and staffing firms.
- The move aims to align Google with evolving labor regulations and avoid bargaining with unions.
- Google will continue enforcing a supplier code of conduct for safe working conditions and legal obligations.
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Google Rolls Back Minimum Wage and Benefits Requirements for Suppliers and Staffing Firms
As a result, Google was obligated to engage in bargaining with the workers’ union.
However, the company is currently appealing this decision.
Google’s spokesperson clarified that these updates are designed to bring the company in line with other large corporations and emphasize that Google is not, and has never been, the direct employer of its suppliers’ employees.
The move could allow Google to avoid bargaining with unions representing these workers.
The announcement follows recent developments in labor regulations, with the National Labor Relations Board working to make it more challenging for companies to avoid bargaining with temporary and contract workers.
In the previous year, the board adopted a rule stating that companies with indirect control over working conditions can be considered employers of contract workers.
However, a federal judge blocked the rule from taking effect in March.
Despite the rollback of the minimum wage and benefits requirements, Google’s spokesperson assured that the company would continue to enforce its supplier code of conduct.
This code mandates that vendors and staffing firms provide safe working conditions and meet their existing legal obligations.
The spokesperson also noted that most of Google’s suppliers operate in states with a minimum wage of at least $15.
As Google navigates the complex landscape of labor regulations and its relationships with suppliers and staffing firms, the impact of this decision on the company’s workforce and public perception remains to be seen.
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