Snapchat Inc. has agreed to pay $15 million to settle a lawsuit filed by California’s civil rights agency, which accused the company of discriminating against female employees and failing to address workplace sexual harassment. The settlement, subject to court approval, covers women who worked for Snapchat in California between 2014 and 2024.
The California Civil Rights Department launched an investigation following claims that Snapchat engaged in discriminatory practices when it came to pay and promotions. The settlement will primarily benefit employees who experienced discrimination at the company. Kevin Kish, the director of California’s civil rights agency, emphasized the importance of equality in the workplace and stated that women deserve equal treatment in every job and industry.
Snapchat, headquartered in Santa Monica, California, expressed disagreement with the allegations but decided to settle to avoid costly and lengthy litigation. The company stated its commitment to maintaining a fair and inclusive environment but insisted that it does not have any ongoing systemic issues related to pay equity, discrimination, harassment, or retaliation against women.
Despite significant growth in their workforce from 250 employees in 2015 to over 5,000 in 2022, Snapchat failed to provide advancement opportunities for female employees. According to the complaint, women in engineering roles, which make up around 70% of Snap’s workforce, encountered barriers when attempting to move up from entry-level positions.
The lawsuit also revealed instances of workplace sexual harassment, with women facing retaliation when they reported such incidents. Negative performance reviews and termination were used as forms of punishment. Additionally, male managers consistently promoted less qualified male colleagues over more qualified women.
In order to resolve the lawsuit, Snapchat has agreed to several measures. The company will hire an independent consultant to assess its compensation and promotion policies and will engage an external auditor to ensure compliance with sexual harassment, retaliation, and discrimination regulations. Furthermore, Snapchat will provide training on preventing discrimination, retaliation, and sexual harassment to all employees. It has also committed to informing employees about their right to report harassment or discrimination without fear of retaliation.
This settlement highlights the importance of addressing workplace discrimination and sexual harassment, particularly in industries dominated by male employees. It serves as a reminder that even companies experiencing significant growth must prioritize creating an inclusive and fair work environment. Snapchat’s agreement to implement comprehensive measures demonstrates a step towards rectifying past issues and fostering a more equitable workplace culture.
