In a significant development, Snapchat's parent company, Snap Inc., has agreed to pay $15 million to settle allegations of discrimination, retaliation, and sexual harassment against female employees. The investigation into these claims was conducted by the California Civil Rights Department over a three-year period.
The probe revealed that women at the Santa Monica-based company were actively discouraged from applying for promotions or lost promotions to less-qualified male colleagues. Furthermore, they faced unwelcome sexual advances and other forms of harassment. When these employees spoke up about their experiences, they faced retaliation in the form of negative performance reviews, denial of professional opportunities, and even termination.
California Civil Rights Department Director Kevin Kish expressed his pride in the state's innovators while emphasizing the importance of ensuring equal opportunities for all workers. He stated that women are entitled to equality in every job and industry.
Snap Inc. disagreed with the claims but decided to settle, citing lengthy litigation and the scope of other settlements as reasons for their decision. The company does not believe it has any ongoing systemic pay equity, discrimination, harassment, or retaliation issues against women.
Under the terms of the settlement, Snap Inc. will pay $15 million in direct relief to affected workers and cover litigation costs. Some $14.5 million of this amount will compensate female employees who were employed at the company between 2014 and 2024.
The company has also agreed to hire an independent consultant to advise on pay and promotion policies, as well as conduct a third-party audit on its sexual harassment, retaliation, and discrimination compliance. This settlement marks one of several recent actions taken by California officials to hold tech giants accountable for their treatment of employees.
The investigation into Snapchat's parent company follows similar allegations against video game company Activision Blizzard in December 2023, which resulted in a $54 million settlement agreement. Attorney General Rob Bonta has also pursued actions against other tech industries, including Google and DoorDash.
