Snap agrees to pay $15 million to settle gender discrimination lawsuit
Snap Inc. agrees to pay $15M to settle a gender discrimination lawsuit from California's civil rights agency, addressing unequal pay and promotions for women.
Snap Inc., the parent company of Snapchat, has consented to pay $15 million to settle a gender discrimination lawsuit from California's Civil Rights Department. The lawsuit followed a three-year investigation revealing that the company allegedly failed to ensure women were paid or promoted equally during its rapid growth phase from 2015 to 2022.
The agency's claims state that female employees faced lower pay, fewer promotions, and a hostile work environment characterized by unwelcome sexual advances and harassment. Women who complained about these conditions reportedly faced retaliation, including denied promotions, negative performance reviews, and termination.
Snap, while disagreeing with the allegations, decided to settle to avoid the high costs and impacts of a prolonged legal battle. Part of the settlement involves hiring an independent consultant to review Snap's compensation and promotion policies and a third-party monitor to audit its compliance regarding harassment and discrimination. Of the $15 million settlement, $14.5 million is designated to compensate women who worked at Snap between 2014 and 2024.