Snapchat Inc. settles $15 million lawsuit on gender discrimination

Snapchat Inc. has agreed to pay $15 million to settle a lawsuit filed by California's civil rights agency, addressing claims of discrimination against female employees, failure to prevent workplace sexual harassment, and retaliation against women who raised complaints. The settlement, which is pending court approval, focuses on female employees at Snapchat Inc. in California between 2014 and 2024.

The resolution marks the end of a thorough investigation spanning more than three years into allegations of gender-based pay and promotion disparities at the Santa Monica-based company. The majority of the settlement funds will go towards compensating affected employees.

California's civil rights agency has underscored the significance of workplace equality, asserting that women should receive equitable treatment across all industries. While Snapchat Inc. has expressed disagreement with the accusations, it chose to settle to avoid protracted legal proceedings.

Despite Snapchat Inc.'s substantial employee growth from 250 to over 5,000, female employees reportedly encountered barriers to career progression, such as discouragement from seeking promotions and losing opportunities to less qualified male colleagues.

Female engineers, who make up 70% of Snap's workforce, faced difficulties in advancing beyond entry-level positions. The lawsuit also shed light on instances of sexual harassment and subsequent retaliation against women who spoke up.

As part of the settlement terms, Snapchat Inc. must enlist an independent consultant to review its compensation and promotion policies and appoint an external auditor to ensure compliance with anti-harassment and anti-discrimination protocols.

Moreover, the company is obligated to conduct training sessions for its staff on preventing discrimination, retaliation, and sexual harassment in the workplace. Employees will also receive guidance on reporting instances of harassment or discrimination without fear of reprisal.

The settlement between Snapchat Inc. and California's civil rights agency signifies a step towards fostering a more inclusive and equitable work environment. By addressing the issues of gender discrimination and harassment, the company aims to create a workplace where all employees, regardless of gender, can thrive and succeed.