Snapchat will pay Americans a one-off payment of $15 million – and you’ll have a 10-year period to claim free money

ELIGIBLE Americans are set to receive a one-time payment from Snapchat after the company agreed to a $15 million settlement.

This comes after the company was the target of a lawsuit filed by the California Department of Civil Rights over allegations of discrimination.

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The lawsuit alleged that Snapchat unfairly treated female employees by allegedly failing to prevent sexual harassment at work and retaliating against victims for complaints.

In agreeing to the settlement, Snapchat Inc. did not admit any wrongdoing and disagreed with the claims made in the lawsuit.

However, a settlement will resolve the claims and end costly and time-consuming litigation.

“We care deeply about our commitment to maintaining a fair and inclusive environment at Snap and do not believe we have any systemic pay equity, discrimination, harassment or retaliation issues against women,” the company said.

Meanwhile, the California Department of Civil Rights celebrated its work to secure the settlement on Wednesday.

“This agreement with Snapchat demonstrates a shared commitment to a California where all workers have a fair chance to realize the American dream,” said Kevin Kish, director of the state civil rights agency.

“Women have the right to equality in all jobs, in all workplaces and in all sectors.”

“In California, we are proud of the work of our state’s innovators, who are the driving force of our nation’s economy,” Kish added.

The majority of the payment amount will go to affected Snapchat employees, officials said.

These are the women who worked for Snap Inc. in California between 2014 and 2024 and who were discriminated against.

In addition to the multimillion-dollar payout, Snap Inc. will also be forced to consult with an independent reviewer who will evaluate the company’s compensation and promotion policies.

They will also hire an independent third-party auditor to evaluate sexual harassment, retaliation, and discrimination compliance.

Under the terms of the agreement, employees will receive training on each of these issues and how to avoid them in the workplace.

Snap will also need to inform employees that they are encouraged to speak up about harassment and discrimination and that they are protected from backlash if they do so.

Although the company grew from 250 employees in 2015 to more than 5,000 seven years later, this expansion and growth did not apply to female employees, the lawsuit claims.

Women “were told to wait their turn, were actively discouraged from applying for promotions, or lost promotion opportunities to less qualified male colleagues,” the civil rights department alleged.

What is a class action settlement?

Class action lawsuits offer groups of people, or “classes,” a way to come together in court.

These lawsuits are often filed by one or a few people who allege that a company or other entity has harmed a large group of people.

When a lawsuit becomes a class action, it extends to all “class members,” or people who may have similar claims to those who filed the lawsuit.

Companies often settle class actions – offering payment to class members who typically waive their right to pursue legal action by accepting money.

These payment agreements often include statements from the defendant denying wrongdoing. Companies tend to settle class actions to avoid the costs of further litigation.

Pollution, discrimination or false advertising are some examples of what can lead to a class action lawsuit at a company’s door.

This was particularly a problem for women in engineering roles, who represent 70% of the company’s workforce.

These women reportedly fought their way out of entry-level positions.

It was also alleged that women who experienced sexual harassment at work faced punishment for speaking out, including receiving negative performance reviews and having their contracts terminated.

Additionally, senior male employees would allegedly promote junior male workers over more qualified women, the suit added.

“Women were told, implicitly and explicitly, that they were second-class citizens at Snap,” the civil rights department said.

The $15 million settlement still needs to be approved at a final hearing, where it will be decided how much each eligible worker will receive.