In order to resolve a complaint filed by California’s civil rights office, which claimed that Snapchat Inc. discriminated against female employees, neglected to stop workplace sexual harassment, and retaliated against women who reported the incident, the business has agreed to pay $15 million.
The California Civil Rights Department said on Wednesday that women who worked for Snapchat Inc. in California between 2014 and 2024 are covered by the settlement. Snapchat Inc. is the owner of the well-known disappearing message app. The court must approve the settlement.
According to a statement from the agency, the agreement ends a more than three-year inquiry into allegations that the Santa Monica, California-based business discriminated against female employees with regard to wages and promotions.
According to California officials, the majority of the settlement funds will be awarded to workers who experienced discrimination at Snapchat Inc.
Kevin Kish, the director of California’s civil rights agency stated that, “In California, we’re proud of the work of our state’s innovators who are a driving force of our nation’s economy. This settlement with Snapchat demonstrates a shared commitment to a California where all workers have a fair chance at the American Dream. Women are entitled to equality in every job, in every workplace, and in every industry.”
Although Snapchat Inc. disputes the agency’s allegations, it chose to reach a settlement to avoid expensive and drawn-out legal proceedings.
“We care deeply about our commitment to maintain a fair and inclusive environment at Snap, and do not believe we have any ongoing systemic pay equity, discrimination, harassment, or retaliation issues against women,” the company stated.
The lawsuit stated that women in engineering roles, which make up over 70% of Snap’s staff, encountered obstacles while attempting to progress from entry-level jobs.
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In its case, the civil rights agency for California claimed that women were subjected to sexual harassment and that, upon speaking out, they were subjected to retribution, which included firing and unfavorable performance evaluations.
The agency said that male managers frequently promoted male workers over women who were more qualified.
“Women were told, both implicitly and explicitly, that they were second-class citizens at Snap,” the agency stated in its lawsuit.
As part of the settlement, the business will have to retain an outside auditor to assess its compliance with sexual harassment, retaliation, and discrimination laws as well as engage an independent consultant to review its policies on promotion and compensation.
According to regulators, the business will also need to provide training to its employees on how to stop sexual harassment, retaliation, and discrimination at work.
Additionally, Snapchat Inc. committed to educating all staff members about their freedom to report harassment or discrimination without worrying about facing consequences.
