No, not what happened. The contracting firm was officially "arms' length" from Google and no Google employees even knew my cousin's name.
However, it turns out that "arms' length" doesn't mean the contractor can get away with absolutely anything.
However, it turns out that "arms' length" doesn't mean the contractor can get away with absolutely anything.
Contractors cannot be at arms length. There has to be an arrangement with the employer (Google here) and the contracting firms to pay. That means there has to be a timesheet for each employee. Could be filled by either party.
You said your cousin wasn't paid because somebody (implying from Google Search) said she took too long and refused to pay her. To me that sounds like a normal story where Google had to approve the hours/pay and they didn't. The excuse from Google employees that they are detached is fishy at best, they wouldn't be able to prevent payment if they were.