In a significant move, video game giant Activision Blizzard has agreed to pay nearly $55 million to settle allegations of gender discrimination, according to the California Civil Rights Department.
The settlement addresses claims of pay and promotion inequity, stemming from a lawsuit filed in July 2021, which accused the company of paying women less than men and fostering a culture of “constant sexual harassment.” The agreement requires Activision to implement measures ensuring fair pay and promotions, with a substantial portion of the settlement funds dedicated to compensating affected workers.
If approved, this settlement would be the second-largest secured by the California regulator, signaling a pivotal moment in addressing workplace discrimination in the gaming industry.
The landmark settlement, reached by Activision Blizzard and the California Civil Rights Department, marks a crucial step in addressing longstanding issues of gender discrimination within the video game industry giant. The $55 million agreement comes in response to allegations filed in July 2021, accusing Activision Blizzard of fostering a workplace environment where women were paid less than their male counterparts and subjected to pervasive sexual harassment.
The settlement, subject to court approval, addresses the core concerns of pay and promotion inequity raised by the regulatory body. Activision Blizzard is now obligated to take concrete steps to ensure fair pay and promotions within the company. The substantial settlement fund of $54.88 million will primarily go toward compensating employees and contract workers in California who were part of the company between October 12, 2015, and December 31, 2020.
While the agreement acknowledges the withdrawal of systemic harassment claims by the California regulator, it signifies a collective effort to rectify past injustices and establish a more equitable workplace environment. Activision Blizzard’s acquisition by Microsoft for $69 billion in October 2022 adds a layer of significance to this resolution, drawing attention to the need for addressing workplace culture issues in the gaming industry, even amidst major corporate transitions.
The settlement agreement also emphasizes a commitment to fostering positive change, with any remaining funds slated for charities supporting women in the video game and technology sectors, as well as organizations promoting gender equality awareness in workplaces.
