Snapchat will pay $15 million to settle a lawsuit filed by a California civil rights organization.
According to the Zhongtong Finance APP, Snap (SNAP.US) subsidiary Snapchat will pay $15 million to settle a lawsuit brought by a California civil rights organization alleging that the company discriminated against female employees, failed to prevent workplace sexual harassment, and retaliated against women who complained.
The settlement agreement reached with Snapchat by the California Department of Civil Rights on Wednesday covers women who worked for the company in California from 2014 to 2024. The settlement agreement is subject to court approval.
The California Department of Civil Rights stated that most of the settlement funds will be paid to employees who have experienced discrimination at Snapchat.
Snapchat stated that it disagrees with the organization's claims, but has decided to settle to avoid expensive and lengthy legal proceedings.
Snapchat's workforce has grown from 250 people in 2015 to over 5,000 in 2022, but this growth has not translated into promotions for female employees.
The California Department of Civil Rights stated in the lawsuit that female engineers, who constitute about 70% of Snap's total workforce, encountered obstacles when attempting to move up from entry-level positions.
The California Department of Civil Rights also stated that women were subjected to sexual harassment and faced retaliation when they spoke out, including negative performance evaluations and terminations. The organization stated that male managers typically promote male employees rather than more qualified female staff.
The settlement agreement requires Snapchat to hire an independent consultant to evaluate its compensation and promotion policies, as well as an external auditor to review its compliance with harassment, retaliation, and discrimination laws. The California Department of Civil Rights stated that the company must also train its employees to prevent workplace discrimination, retaliation, and sexual harassment.
Snapchat has also agreed to provide information to all employees, informing them of their right to report harassment or discrimination without fear of retaliation.