Snapchat has settled with California regulators for $15 million over allegations of discrimination against female employees of the social media company, the California Department for Civil Rights. announced Thursday.
The settlement resolved a more than three-year investigation into 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 dismissal when they spoke out against discrimination.
A Snap spokesperson dismissed the allegations but said the company agreed to the deal to “focus on the future.”
“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. While we disagree with the California Department of Civil Rights’ claims and analysis, we took into consideration the cost and impact of protracted litigation and the scope of other CRD settlements and decided that it is in the company’s best interest to resolve these claims and focus on the future ,” the spokesperson said in a statement.
Approximately $14.5 million of the settlement payment will be dedicated to workers’ compensation, according to the department’s announcement.
As part of the agreement, Snapchat will also hire an independent consultant to evaluate and make recommendations on the company’s compensation and promotion policies. Snap must also hire a third-party monitor to audit the company’s sexual harassment, retaliation, and discrimination compliance and make appropriate recommendations.
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