The company has declared it will be compensating employees for taxes paid on domestic partners' health benefits but only if they're gay.
"We will be grossing-up imputed taxes on health insurance benefits for all same-sex domestic partners in the United States," Google stated in its official blog on Thursday, Jul 1.
But under Google's new policy, the company isn't offering any extra pay to heterosexual domestic partners, because it says heterosexual employees have the option of avoiding the tax by getting married.
Married couples don't have to pay taxes on spousal health benefits.
Google's policy is a step in the right direction, said Daryl Herrschaft, director of the Workplace Project at Human Rights Campaign, a gay rights advocacy group.
The company said its new health benefits compensation will be applicable from Jan 1, 2010.
Google denied requests to comment any further on the policy.