Snapchat Inc. agreed on Wednesday to pay $15 million to settle a lawsuit filed by the California Civil Rights Department over claims that the social media company discriminated against female employees, turned a blind eye to sexual harassment in the workplace, and retaliated against those who filed complaints.
The lawsuit stems from a three-year investigation into the matter, and alleges that Snapchat has repeatedly failed to “ensure that women were paid or promoted equally.” Between 2015 and 2022, a period of rapid growth for the disappearing-message app, the company grew from 250 employees to over 5,000. According to California’s civil rights officials, this growth did not equally benefit female employees, who were “told to wait their turn, were actively discouraged from applying for promotions, or lost promotion opportunities to less qualified male colleagues.” The complaint alleges that this trend was particularly prevalent in engineering roles, which account for 70 percent of Snapchat’s workforce.
Additionally, the department also claims that women “were routinely subjected to unwelcome sexual advances and other harassing conduct so severe or pervasive that it created a hostile work environment,” then faced negative performance reviews and termination when they notified the company about the incidents.
“Women were told, both implicitly and explicitly, that they were second-class citizens at Snap,” the lawsuit stated.
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“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 responding to the suit.
While Snapchat “disagrees” with the agency’s claims, it “took into consideration the cost and impact of lengthy litigation” and determined “it is in the best interest of the company to resolve these claims and focus on the future.”
Under the terms of the proposed settlement, which is still pending court approval, Snapchat will hire an independent consultant to review its compensation and promotion policies to ensure gender equality. The company will also bring in an auditor to ensure compliance with harassment, retaliation, and discrimination regulations, and Snapchat employees will be trained on preventing workplace harassment.
Of the $15 million to be paid out by the company, $14.5 million will go to compensating women who worked for Snapchat between 2014 and 2024.
“In California, we’re proud of the work of our state’s innovators who are a driving force of our nation’s economy,” said Kevin Kish, director of California’s civil rights agency. “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.”
Connor Walcott is a staff writer for Valuetainment.com. Follow Connor on X and look for him on VT’s “The Unusual Suspects.”
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