Snap Inc., the parent company of Snapchat, has agreed to pay $15 million to settle a gender discrimination lawsuit from the California Civil Rights Department. The lawsuit stemmed from a three-year investigation that found Snap allegedly failed to “ensure that women were paid or promoted equally.”
The allegations cover Snap’s period of rapid growth from 2015 to 2022, when the California-based company expanded its workforce from 250 to more than 5,000. During this time, California’s civil rights office alleges that Snap paid women less and offered them fewer promotions compared to male employees.
Additionally, the lawsuit alleges that women at the company were “routinely subjected to unwanted sexual advances and other harassing behavior that was so severe or pervasive as to create a hostile work environment.” When women complained about their work environment, they reportedly faced retaliation in the form of denied promotions, negative performance reviews and dismissal.
“We are committed to maintaining a fair and inclusive environment at Snap, and do not believe there are ongoing systemic pay equity, discrimination, harassment or retaliation issues against women,” Snap spokesperson Ashley Adams said in a statement. declaration. The edge. Adams added that while Snap “disagreed” with the California civil rights office’s claims, the company “considered the costs and impact of protracted litigation” and determined that “it is in the company’s best interests to resolve these resolve claims and focus on the future.”
Under the proposed settlement, Snap must hire an independent consultant to evaluate Snap’s compensation and promotion policies and make recommendations. It will also have to hire an outside monitor to monitor the company’s compliance with sexual harassment, retaliation and discrimination. Of the $15 million Snap agreed to pay, $14.5 million will go toward compensating women who worked at the company between 2014 and 2024.
