Snapchat's parent company on Wednesday agreed to settle $15 million into a three-year investigation by the California Civil Rights Department (CRD) over allegations of discrimination, retaliation, and sexual harassment of its female employees, according to state officials.
California Civil Rights' Three-Year Investigation
The California Civil Rights Department, which conducted the investigation, revealed that Snapchat Inc., the technology company behind the popular social media app, treated its female employees unfairly despite its rapid growth from 2015 to 2022.
According to the state officials, Santa Monica-based female employees were either discouraged from actively seeking promotions or lost out on promotions to less-qualified male counterparts. Aside from facing unwelcome sexual advances and other forms of harassment, the CRD also alleged that women workers faced retaliation when raising such concerns, including the issuance of negative performance reviews, deprivation of professional opportunities, and termination of their employment.
Snapchat's Commitment to Resolving The Allegations
Snap emphasized its dedication to upholding a fair and inclusive environment, stating on Wednesday that it does not perceive any current systemic issues related to pay equity, discrimination, harassment, or retaliation against women. Despite its disagreement with the claims and analyses from the California Civil Rights Department, Snap acknowledged the financial and reputational impacts of prolonged litigation and opted to resolve the claims to prioritize its future focus.
The statement further indicated that Snap has been successfully implementing tools and governance for several years to achieve pay equity, affirming the company's commitment to ongoing investment in policies that ensure team members are consistently valued and compensated fairly for their work.
Under the settlement pending court approval, Snap will pay fifteen million dollars to cover direct relief and litigation costs, with fourteen million five hundred thousand dollars earmarked for compensating female employees who worked at the company from 2014 to 2024. Snap also committed to hiring an independent consultant who would guide its pay and promotion policies and undergo a third-party audit to assess its compliance with sexual harassment, retaliation, and discrimination standards.
California's Pride in Holding Companies Accountable
Kevin Kish, the Director of the Civil Rights Department, emphasized California's pride in its innovators, who significantly contribute to the national economy and the state's civil rights laws, which protect workers from discrimination and promote opportunities for success.
The settlement represents one of California officials' recent actions to hold the state's tech giants accountable. In December, the Civil Rights Department reached a $54 million settlement agreement with video game company Activision Blizzard to address similar allegations of pay discrimination against women.
Attorney General Rob Bonta has also pursued legal actions against tech industries, including joining a multi-state lawsuit against Google that led to a $700 million settlement by the end of 2023. Bonta settled with DoorDash in February over allegations of selling its customers' personal information.
