Snapchat To Pay $15 Mln In California Discrimination, Harassment Settlement

Snap Inc., the parent of social media platform Snapchat, has agreed with the California Civil Rights Department or CRD to pay $15 million to settle alleged discrimination, harassment, and retaliation against women employees. The agreement is subject to court approval.

The State agency for enforcing California’s civil rights laws stated that the company, as part of the deal, would take action to help ensure the implementation of fair employment practices. It will also provide monetary relief to women, who were employees at the company in California between 2014 and 2024.

If approved by the court, the settlement would require Snap to pay $15 million to cover direct relief to workers and litigation costs. Of the total, around $14.5 million is for compensating workers.

The company is required to retain an independent consultant to evaluate and make recommendations regarding its compensation and promotion policies and training materials. The company needs to make sure that future contracts with staffing agencies require compliance with state protections against workplace discrimination and harassment.

Snap will also recognize its obligation to not discriminate against or harass employees based on sex, and to contract with a third-party monitor to audit its sexual harassment, retaliation, and discrimination compliance, among others.

The settlement resolves a more than three-year investigation into Santa Monica, California-based Snap over claims of employment discrimination, equal pay violations, and sexual harassment and retaliation.

According to the CRD, Snap showed a period of rapid growth since its founding in 2011, with the employee count increasing from 250 in 2015 to over 5,000 in 2022.

Despite its growth, Snap allegedly failed to adopt measures to ensure equality for women in payment and promotion. Instead, women employees encountered a glass ceiling and were told to wait their turn, were actively discouraged from applying for promotions, or lost promotion opportunities to less qualified male colleagues.

CRD also alleged that women suffered unwelcome sexual advances and other harassing conduct, and also faced retaliation when they spoke up. They had to face the denial of professional opportunities, negative performance reviews, and termination.

CRD Director Kevin Kish said, “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.”

Snap’s women employees, who worked in California between 2014 and 2024, may be eligible to receive compensation. As of now, they are not required to take any action. If the court approves the settlement, covered workers will receive further information and updates from a settlement administrator.