Google eliminates the minimum wage for suppliers and recruitment companies

With this move, Google wants to make it clear that it is not the employer of its suppliers' employees. A US authority determined that the US company was a participating employer.

Google is withdrawing salary requirements for its suppliers and recruiters in the US. “These updates bring us in line with other major companies and simply make clear that Google is not and has never been the employer of our supplier employees,” a company spokesperson said on Friday.

Since 2019, they have had to pay their employees at least $15 an hour and offer them health insurance and other benefits. With this move, the Internet company can avoid potential negotiations with unions.

Google as a participating employer

This was preceded by a ruling by the US Labor Relations Board (NLRB), which classified Google as a so-called “participating employer” of temporary workers from employee services provider Cognizant Technology Solutions. According to the authority, its subsidiary, Alphabet, was able to exercise control over the workers even though they were not direct employees. For this reason, the company should have negotiated with the Cognizant union. Google has appealed this decision.

The Technology Group wants to continue to adhere to the Supplier Code of Conduct that ensures safe working conditions and meets existing legal obligations. According to the spokesperson, most suppliers operate in states that require a minimum wage of at least $15 (€14.05). (APA/Reuters)