Snapchat Inc. has agreed to pay USD 15 million to settle a lawsuit filed by California's civil rights agency. The lawsuit claimed that Snapchat discriminated against female employees, failed to stop workplace sexual harassment, and retaliated against women who reported the incident.
The California Civil Rights Department announced 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 called 'Snapchat'. Court approval is required for the settlement.
Kevin Kish, the director of California's civil rights agency, stated, "We are proud of the work of our state's innovators, who are a driving force of our nation's economy." "Our shared commitment to a California where all workers have an equal opportunity to achieve the American Dream is demonstrated by this settlement with Snapchat. Women have the right to equality in all fields, industries, and workplaces.
According to a statement from the department, the agreement ends a more than three-year investigation into allegations that the Santa Monica, California-based business discriminated against female employees with regard to salary and promotions.
According to California civil rights officials, the majority of the settlement funds will be awarded to workers who experienced discrimination at Snapchat Inc.
From 250 workers in 2015 to over 5,000 in 2022, Snapchat Inc. officials from California civil rights claimed that although employment had increased, female employees "were told to wait their turn, were actively discouraged from applying for promotions, or lost promotion opportunities to less qualified male colleagues."
The complaint stated that women in engineering roles, which make up approximately 70 per cent of Snap's workforce, encountered obstacles when attempting to progress from entry-level jobs.
Settlement terms
As part of the settlement, not only Snapchat will pay USD 15 million to the paintiffs but also 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 regarding promotion and compensation.
According to officials, 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.
