Snapchat’s parent company, Snap Inc., (“Snap”) has agreed to pay $15 million and make significant changes to its employment practices following accusations of discrimination, harassment, and retaliation against women. The settlement with the California Civil Rights Department (CRD) is significant because it required the company to go beyond what state laws currently mandate, potentially providing insight into future legislation
The CRD had investigated claims that Snap fostered an unfair workplace culture where women were paid less and had fewer opportunities for promotion compared to men. Despite denying these allegations, Snap agreed to settle the case without admitting fault. The settlement, awaiting court approval, involves Snap providing financial compensation and committing to measures aimed at preventing future discrimination and harassment.
What makes this settlement noteworthy is how it extends beyond California’s existing equal pay laws in several ways:
- Salary History Ban for Current Employees: Snap is prohibited from using an employee’s previous salary to determine their current pay or promotional opportunities. This goes beyond California law, which already bans asking job applicants about salary history.
- Consideration of Equity Awards: Snap cannot factor in an employee’s unvested equity awards when setting their compensation. This rule prevents Snap from asking potential hires about equity they might leave behind at their current job.
- Transparency in Negotiations: Snap must inform job applicants upfront whether their compensation is negotiable within a given range. This disclosure is not required under current state law.
The settlement with Snap serves as a reminder to all employers about the growing scrutiny on issues of pay equity and transparency. As companies navigate these evolving standards, they may need to adopt similar practices to ensure equitable treatment of all employees.
For more information and to ensure your company is in compliance with the emerging pay equity laws, please feel free to contact us at info@mnklawyers.com.
This material is provided for informational purposes only. It is not intended to constitute legal advice, nor does it create a client-lawyer relationship between MNK Law and any recipient. Recipients should consult with counsel before taking any actions based on the information contained within this material.
