Google Removes Minimum Wage and Benefits Rule for Suppliers

Google announces the removal of the $15 minimum wage and benefits requirement for US suppliers and staffing firms.

  • Google announces the removal of the $15 minimum wage and benefits requirement for US suppliers and staffing firms.
  • This decision aims to comply with evolving labor regulations and avoid negotiations with unions.
  • The move follows a ruling by the U.S. National Labor Relations Board, labeling Google a “joint employer” of certain workers.

Google, under Alphabet Inc, has made a significant announcement, retracting the mandate for US suppliers and staffing firms to adhere to a $15 minimum wage and benefits requirement. This decision, aimed at aligning with changing labor regulations, is expected to streamline operations and avoid negotiations with unions. The tech giant clarified that it does not consider itself the employer of its suppliers’ employees, in line with industry standards and legal frameworks.

The decision follows a recent ruling by the U.S. National Labor Relations Board, which labeled Google a “joint employer” of workers sourced through staffing firm Cognizant Technology Solutions. This ruling triggered the need for negotiations with the workers’ union, a move contested by Google. The decision to remove the minimum wage and benefits rule is seen as a strategic response to navigate evolving labor regulations, especially concerning contingent workers, while also addressing recent legal developments impacting its employment status.