Snapchat settled with California regulators for $15 million over allegations of discrimination against female employees at the social media company, the California Civil Rights Department announced Thursday.
The settlement resolved an investigation that spanned more than three years over allegations of employment discrimination, equal pay violations, sexual harassment and retaliation against female employees at Snap Inc., the company that operates Snapchat.
The California agency alleged that women at the company were not paid or promoted equally, faced harassment and were retaliated against with negative performance reviews, denial of professional opportunities and termination when they spoke up against discrimination.
A Snap spokesperson pushed back on the allegations, but said the company agreed to the settlement to “focus on the future.”
“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. While we disagreed with the California Civil Rights Department’s claims and analyses, we took into consideration the cost and impact of lengthy litigation, and the scope of the CRD’s other settlements, and decided it is in the best interest of the company to resolve these claims and focus on the future,” the spokesperson said in a statement.
Roughly $14.5 million of the settlement payment will be dedicated to compensating workers, according to the department’s announcement.
As part of the settlement, Snapchat will also retain an independent consultant to evaluate and make recommendations regarding the company’s compensation and promotion policies. Snap must also contract a third-party monitor to audit the company’s sexual harassment, retaliation and discrimination compliance and make appropriate recommendations.
