The US Department of Labor has found that Google paid less salary to female engineers at the company’s California and Washington State facilities. The department, in a press statement, said that it reached a settlement with Google to resolve allegations of systemic compensation and hiring discrimination. As part of the settlement, Google will have to pay over $3.8 million to more than 5,500 current employees and job applicants.

Routine compliance evaluation by the department’s Office of Federal Contract Compliance Programs also found that hiring rate differences disadvantaged female and Asian applicants for software engineering positions at Google’s locations in San Francisco and Sunnyvale, and in Kirkland.

“Pay discrimination remains a systemic problem. Employers must conduct regular pay equity audits to ensure that their compensation systems promote equal opportunity,” said Office of Federal Contract Compliance Programs Director Jenny R. Yang.

Google has agreed to pay $3,835,052 to resolve OFCCP’s allegations, namely $1,353,052 in back pay and interest to 2,565 female employees in engineering positions subject to pay discrimination; and $1,232,000 in back pay and interest to 1,757 female and 1,219 Asian applicants for software engineering positions not hired, it said.

Google has also agreed to allocate a cash reserve of at least $1,250,000 in pay-equity adjustments for the next 5 years for U.S. employees in engineering positions at Google’s Mountain View, Kirkland, Seattle and New York establishments. These locations house approximately 50% of Google’s engineering employees nationwide.

Google has also provided job opportunities to 51 female and 17 Asian applicants for software engineering positions.