SAN FRANCISCO — Snapchat Inc. will pay $15 million to settle a lawsuit brought by California’s civil rights agency that claimed the company discriminated against female employees, failed to prevent workplace sexual harassment and retaliated against women who complained.
The settlement with Snapchat Inc., which owns the popular disappearing-message app by the same name, covers women who worked for the company in California between 2014 and 2024, the California Civil Rights Department announced Wednesday. The settlement is subject to court approval.
The agreement resolves a more than three-year investigation over claims that the Santa Monica, California-based company discriminated against female employees when it came to pay and promotions, the department said in a statement.
The bulk of the settlement money will go to employees who faced discrimination at Snapchat Inc., California officials said.
“In California, we’re proud of the work of our state’s innovators who are a driving force of our nation’s economy,” said Kevin Kish, director of California’s civil rights agency. “This settlement with Snapchat demonstrates a shared commitment to a California where all workers have a fair chance at the American Dream. Women are entitled to equality in every job, in every workplace, and in every industry.”
Snapchat Inc. said it disagrees with the agency’s claims but that it decided to settle to avoid costly and lengthy litigation.
“We care deeply about our commitment to maintain a fair and inclusive environment at Snap, and do not believe we have any ongoing systemic pay equity, discrimination, harassment, or retaliation issues against women,” the company said in a statement.
Snapchat Inc. grew from 250 employees in 2015 to over 5,000 in 2022. But the growth didn’t translate to advancement for female employees who “were told to wait their turn, were actively discouraged from applying for promotions, or lost promotion opportunities to less qualified male colleagues,” California officials said.
In particular, women in engineering roles, which account for about 70% of Snap’s workforce, found barriers when trying to advance from entry-level positions, according to the complaint.
California’s civil rights agency also said in its lawsuit that women were sexually harassed and that when they spoke up, they faced retaliation that included negative performance reviews and termination. Male managers routinely promoted male employees over more qualified women, the agency said.
“Women were told, both implicitly and explicitly, that they were second-class citizens at Snap,” the agency said in its lawsuit.
The settlement will require the company to hire an independent consultant to evaluate its compensation and promotion policies and retain an outside auditor of its sexual harassment, retaliation, and discrimination compliance. The company will also have to train its staff on preventing discrimination, retaliation and sexual harassment in the workplace, officials said.
Snapchat Inc. also agreed to provide information to all employees about their right to report harassment or discrimination without fear of retaliation.
Snapchat Inc. has recently agreed to pay $15 million to settle a discrimination and harassment lawsuit filed in California. The lawsuit, which was brought by former employees of the popular social media company, alleged that Snapchat fostered a toxic work environment that allowed for discrimination and harassment to occur unchecked.
The settlement comes after months of legal battles and negotiations between Snapchat and the plaintiffs. The lawsuit, which was filed in 2019, accused Snapchat of failing to address complaints of discrimination and harassment, and of retaliating against employees who spoke out against such behavior.
According to court documents, the plaintiffs alleged that Snapchat’s workplace culture was rife with sexism, racism, and other forms of discrimination. They claimed that female employees were routinely passed over for promotions, paid less than their male counterparts, and subjected to inappropriate comments and behavior from male colleagues. Additionally, employees of color alleged that they were marginalized and excluded from opportunities for advancement within the company.
In response to the lawsuit, Snapchat issued a statement acknowledging the harm caused by the allegations and expressing a commitment to creating a more inclusive and respectful workplace environment. The company stated that it has implemented new policies and procedures to prevent discrimination and harassment in the future, including mandatory training for all employees on diversity and inclusion.
The $15 million settlement will be divided among the plaintiffs, with each receiving a portion based on their individual experiences and damages suffered. In addition to the financial compensation, Snapchat has also agreed to make changes to its internal policies and practices to ensure a more equitable and respectful workplace for all employees.
This settlement serves as a reminder to companies of the importance of addressing discrimination and harassment in the workplace. It highlights the need for organizations to take proactive measures to prevent such behavior and create a culture of respect and inclusivity for all employees. By holding companies accountable for their actions, lawsuits like this one can help drive positive change in corporate culture and promote a more diverse and equitable workforce.
