Snap Inc. To Pay $15M In Settlement Over Gender Discrimination And Harassment Allegations By California Civil Rights Department

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Snap Inc. SNAP has agreed to pay $15 million to settle a lawsuit filed by the California Civil Rights Department. The lawsuit accused the company of gender discrimination, failure to prevent workplace sexual harassment, and retaliation against female employees who raised complaints.

What Happened: The settlement, announced on Wednesday, covers female employees who worked at Snapchat in California between 2014 and 2024.

This resolution concludes a probe that lasted over three years, during which the California-based company was accused of unfair treatment of female staff in terms of pay and promotions.

The majority of the settlement funds will be allocated to the affected employees, as confirmed by California officials. The settlement is contingent on court approval.

Snapchat expanded from 250 employees in 2015 to over 5,000 in 2022. However, this growth did not lead to advancement for female employees, who were reportedly told to wait their turn, discouraged from applying for promotions, or lost promotion opportunities to less qualified male colleagues, according to California officials.

Kevin Kish, director of California's civil rights agency, emphasized the importance of equality in the workplace, stating, "Women are entitled to equality in every job, in every workplace, and in every industry."

Despite its disagreement with the agency’s allegations, Snapchat Inc. chose to settle to avoid prolonged and costly litigation. The company has committed to maintaining a fair and inclusive work environment and has agreed to hire an independent consultant to assess its compensation and promotion policies.

"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," Snap said in a statement, according to AP News.

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Why It Matters: This settlement is part of a broader trend of high-profile companies facing legal action over gender discrimination and harassment. In July, Fox Corp. settled a $12 million gender discrimination lawsuit, further intensifying scrutiny on workplace equality.

In November, three employees of Amazon Inc. filed a landmark lawsuit alleging gender discrimination and retaliation. They claimed the company practiced gender bias by assigning women lower job titles and higher pay compared to men in similar roles.

Recently, SpaceX faced a sexual harassment lawsuit filed by eight former engineers, accusing CEO Elon Musk of fostering a hostile work environment. The lawsuit alleged the dissemination of inappropriate sexual content that belittled women and the LGBTQ+ community.

Additionally, Apple Inc. was hit with a class-action lawsuit, alleging unequal pay for women. The lawsuit claimed that Apple’s hiring and performance review practices promoted wage inequality between women and men.

Price Action: Snap Inc. shares were up 0.38% in premarket trading on Thursday after closing at $15.80 on Tuesday, according to data from Benzinga Pro.

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Image Via Shutterstock

This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote

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Posted In: EquitiesNewsLegalManagementGlobalMarketsTechCaliforniaGender DiscriminationKaustubh BagalkoteSexual HarassmentSnapChat
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