Snapchat faced allegations of gender discrimination by the California Civil Rights Department (CRD). The department claimed that from 2015 to 2022, women at Snap Inc., the parent company of Snapchat, were denied fair pay and promotions compared to their male colleagues.
The lawsuit coincided with a period of explosive growth for Snapchat, as its workforce grew from 250 to over 5,000 employees. However, the lawsuit painted a troubling picture of a hostile work environment for women at the company, citing unwelcome advances, harassment, and retaliation against those who spoke up.
Snap denied the allegations but chose to settle the lawsuit for $15 million to avoid a lengthy legal battle. As part of the settlement, the company committed to making changes to its compensation and promotion policies by bringing in an independent consultant and a third-party monitor to ensure compliance with anti-discrimination and anti-retaliation regulations.
The settlement earmarked $14.5 million to compensate women who experienced these issues at Snap between 2014 and 2024. This agreement was not just about financial compensation; it represented a commitment to fostering a workplace culture free from gender discrimination and focused on equal opportunity and respect for all employees.
