Snapchat parent firm agreed on Wednesday, June 19, to pay $15 million to settle a civil rights agency complaint in California. This follows a three-year inquiry into claims of discrimination, retaliation, and sexual harassment against its female workers.
According to authorities, most of the settlement funds will be distributed to the firm's workers who experienced prejudice.
Settlement Terms
Women who worked at Snapchat Inc. in California between 2014 and 2024 are covered by the settlement, as announced by the California Civil Rights Department. Snapchat Inc. runs the popular instant messaging app of the same name. The court must approve the settlement first before it takes effect.
Apart from the million-dollar funds, Politico reported that the settlement requires the corporation to appoint an independent consultant to assess its compensation and promotion policies and an outside auditor to inspect its sexual harassment, retaliation, and discrimination compliance.
Officials also said that the corporation must educate its employees on how to avoid sexual harassment, retribution, and discrimination on the job.
Claims of Discrimination, Harassment
In a report by The Associated Press, the settlement ends an inquiry into allegations that the corporation engaged in salary and promotion discrimination against female workers, failed to prevent harassment in the workplace, and retaliated against those women who reported such incidents.
Snapchat's workforce increased from 250 in 2015 to more than 5,000 in 2022. However, California authorities said female workers did not benefit from the expansion regarding advancement possibilities. They were either instructed to wait their time, discouraged from asking for promotions, or saw less competent male colleagues promoted instead.
The lawsuit claims that Snapchat's female engineers, who comprise over 70% of the company's employees, faced obstacles while attempting to move up from entry-level jobs.
The complaint also claimed that women were sexually harassed and retaliated with bad performance ratings and termination when they spoke up.
Snapchat's Response
Meanwhile, Snapchat stated its disagreement with the agency's accusations but chose to resolve the case through a settlement to avoid protracted and expensive litigation.
The firm stated that it is committed to fostering an inclusive and equitable work environment. It denies any persistent problems with gender bias, harassment, discrimination, or retaliation.
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