Snapchat Inc. to pay $15 million to settle discrimination and harassment lawsuit in California

SAN FRANCISCO (AP) — Snapchat Inc. can pay $15 million to settle a lawsuit introduced by California’s civil rights company that claimed the corporate discriminated towards feminine staff, failed to stop office sexual harassment and retaliated towards girls who complained.

The settlement with Snapchat Inc., which owns the favored disappearing-message app by the identical identify, covers girls who labored for the corporate in California between 2014 and 2024, the California Civil Rights Division introduced Wednesday. The settlement is topic to court docket approval.

The settlement resolves a greater than three-year investigation over claims that the Santa Monica, California-based firm discriminated towards feminine staff when it got here to pay and promotions, the division mentioned in an announcement.

The majority of the settlement cash will go to staff who confronted discrimination at Snapchat Inc., California officers mentioned.

“In California, we’re pleased with the work of our state’s innovators who’re a driving pressure of our nation’s economic system,” mentioned Kevin Kish, director of California’s civil rights company. “This settlement with Snapchat demonstrates a shared dedication to a California the place all employees have a good likelihood on the American Dream. Ladies are entitled to equality in each job, in each office, and in each trade.”

Snapchat Inc. mentioned it disagrees with the company’s claims however that it determined to settle to keep away from pricey and prolonged litigation.

“We care deeply about our dedication to take care of a good and inclusive setting at Snap, and don’t consider now we have any ongoing systemic pay fairness, discrimination, harassment, or retaliation points towards girls,” the corporate mentioned in an announcement.

Snapchat Inc. grew from 250 staff in 2015 to over 5,000 in 2022. However the progress didn’t translate to development for feminine staff who “have been informed to attend their flip, have been actively discouraged from making use of for promotions, or misplaced promotion alternatives to much less certified male colleagues,” California officers mentioned.

Particularly, girls in engineering roles, which account for about 70% of Snap’s workforce, discovered limitations when attempting to advance from entry-level positions, in accordance with the grievance.

California’s civil rights company additionally mentioned in its lawsuit that girls have been sexually harassed and that once they spoke up, they confronted retaliation that included damaging efficiency critiques and termination. Male managers routinely promoted male staff over extra certified girls, the company mentioned.

“Ladies have been informed, each implicitly and explicitly, that they have been second-class residents at Snap,” the company mentioned in its lawsuit.

The settlement would require the corporate to rent an unbiased guide to guage its compensation and promotion insurance policies and retain an outdoor auditor of its sexual harassment, retaliation, and discrimination compliance. The corporate may even have to coach its employees on stopping discrimination, retaliation and sexual harassment within the office, officers mentioned.

Snapchat Inc. additionally agreed to supply info to all staff about their proper to report harassment or discrimination with out concern of retaliation.