Microsoft's Activision Blizzard has agreed to settle a case filed by the California Civil Rights Department that alleged gender discrimination in the company by denying women promotion opportunities and paying them less.
In the proposed settlement agreement, Activision Blizzard will have to pay nearly $55 million to provide relief to female workers and contractors from October 2015 to December 2020.
INGLEWOOD, CA - SEPTEMBER 03: Signage is seen at The Ultimate Fan Experience, Call Of Duty XP 2016, presented by Activision, at The Forum on September 3, 2016 in Inglewood, California.
Activision Blizzard's Settlement
As outlined in the California Civil Rights Department statement, around $46 million of the total settlement amount will have to go to the fund for affected women.
The 2021 lawsuit filed by the California Civil Rights Department, which was previously known as the Department of Fair Employment and Housing, made allegations of sexual harassment, discrimination, and retaliation against Activision Blizzard. The lawsuit brought attention to the issue, prompting an investigation.
Subsequently, the Wall Street Journal reported that the company's CEO, Bobby Kotick, was aware of internal misconduct allegations but did not disclose all relevant information to the board.
The settlement, if approved by the court, is seen as a significant step forward, providing direct relief to workers affected by the alleged discrimination. California Civil Rights Department Director Kevin Kish emphasized their commitment to promoting and enforcing women's civil rights in the workplace.
"California remains deeply committed to promoting and enforcing the civil rights of women in the workplace," said Kish. "If approved by the court, this settlement agreement represents a major step forward and will bring direct relief to Activision Blizzard workers. At the California Civil Rights Department, we will continue to do our part to fight for the rights of our state's residents."
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Alleged Violations of Activision Blizzard
The lawsuit, filed before the Los Angeles County Superior Court, alleged violations of California's Equal Pay Act and Fair Employment and Housing Act. These laws play a crucial role in protecting individuals in the state against discrimination in various aspects of the workplace.
Activision Blizzard, headquartered in Santa Monica, California, is renowned for its popular video game franchises, including "Call of Duty," "World of Warcraft," "Guitar Hero," and "Diablo."
Activision Blizzard's recent announcement serves as an additional measure to complement the company's actions, which include the 2021 consent decree with the US Equal Employment Opportunity Commission and the proactive recruitment and retention initiatives outlined in the 2022 Environmental, Social, and Governance Report.
Upon court approval of the settlement agreement, Activision Blizzard will be obligated to furnish financial relief, allocate any surplus settlement funds to charitable organizations, engage in an independent consultant to assess compensation and promotion policies and persist in endeavors to include qualified candidates from underrepresented communities.
Compensation eligibility extends to women employed or worked as contract workers for Activision Blizzard in California from October 12, 2015 to December 31, 2020.
Those falling within the scope of the proposed agreement will receive further updates and information from a settlement administrator, requiring no immediate action at this time, according to the department.
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