Snapchat Inc. to pay $15 million to settle discrimination lawsuit

FILE – The Snapchat app on a mobile device is seen in New York. Snap Inc., Wednesday, Aug. 9, 2017. The owner of Snapchat will pay $15 million to settle a lawsuit brought by California’s civil rights agency that claimed the company discriminated against female employees, failed to prevent workplace sexual harassment and retaliated against women who complained. (AP Photo/Richard Drew, File)

SANTA MONICA – Santa Monica-based Snap Inc., the owner of the Snapchat social media platform, will pay $15 million to resolve a state investigation into allegations of discrimination, harassment and retaliation against women at the company, state officials said Wednesday.

The proposed settlement, which still needs court approval, will end a three-year probe of allegations that women at the company encountered a “glass ceiling” in terms of advancement, while some endured “unwelcome sexual advances” and those who spoke out “allegedly faced retaliation,” including negative performance reviews, denial of work opportunities or even termination, according to the state Civil Rights Department.

“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,” the company said in a statement issued Wednesday. “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.

“For several years now we have successfully implemented tools and governance to achieve pay equity, and we will keep investing in and implementing policies to ensure team members continue to be valued and paid equitably for their work,” the statement added.

“In California, we’re proud of the work of our state’s innovators who are a driving force of our nation’s economy,” Civil Rights Department Director Kevin Kish said in a statement. “We’re also proud of the strength of our state’s civil rights laws, which help ensure every worker is protected against discrimination and has an opportunity to thrive. 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.”

According to the state, the settlement requires the company to retain a consultant to make recommendations for compensation and promotion policies and training; contract with a third-party monitor to audit the company’s sexual harassment, retaliation and discrimination compliance; ensure staff training on the issues; and provide information to all employees about their right to file.  complaints without fear of retaliation.

Women who worked for the company between 2014 and 2024 may also be eligible for compensation. Additional information on such compensation will be posted on the CRD website once the settlement receives court approval. (CNS)