Google has agreed to pay $7.5 million to settle a class action lawsuit alleging it improperly paid hundreds of thousands of employees for their time, the New York Times reported Thursday.
The settlement was reached Wednesday in New York federal court after a yearlong probe by the Office of Government Ethics, the Times reported.
The agreement will also allow Google to pay back any employees who have already been paid, according to the Times.
The Times reported that the agreement is “the biggest ever for such a class-action lawsuit,” adding that Google will also have to pay for legal costs and damages incurred by employees.
The lawsuit alleged that Google violated the federal False Claims Act by paying employees more than their regular hourly rate, even though they worked only 40 hours per week.
Google has denied any wrongdoing and has defended the payments.
The company has said it is “committed to being transparent and fair” in its dealings with employees, according the Times report.
Google also has agreed not to pay workers for hours they worked during the investigation.