Overview
Microsoft-owned Activision Blizzard has reached a settlement agreement with a California state agency over allegations of gender discrimination. The lawsuit accused the video game publisher of denying women promotion opportunities and paying them less. As part of the proposed settlement, Activision Blizzard will pay nearly $55 million to provide relief to female employees and contractors from October 2015 to December 2020, as well as cover legal fees. The California Civil Rights Department stated that $46 million of the total amount will be allocated to the fund for affected women.
Background
The Equal Employment Opportunity Commission had initially highlighted sexual harassment, pregnancy discrimination, and retaliation issues within the company. As a result, Activision Blizzard agreed to establish an $18 million fund for victims. In 2021, California’s Department of Fair Employment and Housing filed a lawsuit against the company, presenting claims of sexual harassment, discrimination, and retaliation. The Wall Street Journal later reported that company CEO Bobby Kotick was aware of misconduct allegations but did not disclose all relevant information to the board.
Legal Proceedings
Last week, the Federal Trade Commission challenged a federal judge’s decision to reject its attempt to halt the merger in a San Francisco appellate court. The approval of Activision’s settlement with the state agency is pending the Los Angeles County Superior Court’s review. According to the proposed agreement, the agency will file a new complaint that excludes prior harassment allegations, as revealed by CNBC.
Enhancing Transparency
To enhance transparency, unless compensation is non-negotiable, Activision Blizzard will now be required to inform job applicants in writing at the beginning of the hiring and promotion processes that they have the option to negotiate their pay.This settlement represents a significant step towards addressing the allegations of discrimination and sexual harassment within Activision Blizzard. By providing compensation and establishing greater transparency, the company aims to create a more inclusive and equitable work environment for all its employees.