Snapchat will pay its employees $15 million; Read the company’s message

Snapchat’s parent company, Snap Inc., has agreed to pay its female employees $15 million to settle a gender discrimination lawsuit filed by the California Department of Civil Rights. The lawsuit alleges that the U.S.-based company failed to guarantee fair wages and promotion opportunities to its female employees for three years.


What the lawsuit claims
The lawsuit (seen by The Verge) covers Snap’s growth period between 2015 and 2022, when the messaging platform’s parent company increased its workforce from 250 to more than 5,000 employees. California’s civil rights agency says that during this period, Snapchat paid women less and offered them fewer promotional opportunities than their male counterparts.

Additionally, the lawsuit further charged that women at Snap “were regularly subjected to unwelcome sexual advances and other harassing behavior so severe or pervasive that it created a hostile work environment.”


The lawsuit even pointed out that when women complained about their work environment, they would face retaliation in the form of denied promotions, negative performance reviews, and terminations.


What the company has to say
In a statement to The Verge, Snap spokesperson Ashley Adams said: “We are deeply committed to our commitment to maintaining a fair and inclusive environment at Snap, and do not believe we have any systemic issues with pay equity, discrimination, harassment, or retaliation against women.”

Adams added that while Snap “disagrees” with the claims made by California’s civil rights agency, the company “considered the cost and impact of lengthy litigation” and determined that ” it is in the best interest of society to resolve the problem.” these demands and focus on the future.

Under the proposed settlement, Snap will be required to hire an independent consultant to review and recommend changes to its compensation and promotion policies. Additionally, the company will engage a third party to monitor and verify its compliance with sexual harassment, retaliation and discrimination regulations.

Of the $15 million, Snap agreed to pay $14.5 million to compensate women who worked at the company between 2014 and 2024.