June 20 (Reuters) - Snapchat owner Snap has agreed to
pay $15 million to settle a California civil rights agency's
claims that the tech company paid women less than men, subjected
female workers to sexual harassment and retaliated against them
for complaining.
The California Civil Rights Department announced the
settlement, which is subject to court approval, in a release on
Wednesday. The deal would resolve an investigation that began
more than three years ago, the agency said.
Santa Monica-based Snap in a statement provided by a
spokesperson said the company is committed to maintaining a fair
and inclusive environment and denied engaging in systemic
discrimination against women.
"While we disagreed with the California Civil Rights
Department's claims and analyses, we took into consideration the
cost and impact of lengthy litigation ... and decided it is in
the best interest of the company to resolve these claims and
focus on the future," the company said.
The state agency has brokered several large settlements in
sex discrimination cases in recent years, including a $100
million deal with videogame maker Riot Games in 2021 and a $54
million settlement with Activision Blizzard last year. Those
companies denied wrongdoing.
The department in Wednesday's release said Snap underwent a
period of rapid growth between 2015 and 2022 but failed to put
measures into place to ensure that women were paid and promoted
equally.
"Instead, women encountered a glass ceiling and were told to
wait their turn, were actively discouraged from applying for
promotions, or lost promotion opportunities to less qualified
male colleagues," the agency said.
The department also alleged that female workers were
subjected to unwelcome sexual advances and other harassing
conduct. Women who complained were denied professional
opportunities or fired, according to the agency.
Along with the payout, Snap has agreed to retain an
independent consultant to evaluate its compensation and
promotion policies, ensure that contracts with staffing agencies
require compliance with anti-discrimination laws, and conduct
training on the prevention of discrimination, retaliation and
sexual harassment, the department said.
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