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Significance of the Settlement
This marks the California Civil Rights Department’s second-largest settlement agreement, following extensive negotiations during which Activision Blizzard has introduced measures to foster inclusivity and hired a chief diversity officer.
Overview of the Activision Blizzard Settlement
Activision Blizzard and the California Civil Rights Department have reached a tentative $54 million settlement over gender and pay inequality allegations, contingent on court approval.
Details of the Legal Agreement
As part of the settlement, Activision Blizzard is expected to refine pay and promotion practices, and provide financial compensation to eligible female employees and contractors.
The Prolonged Investigation and Legal Action
The Santa Monica-based company was investigated for over two years, leading to a 2021 lawsuit under the California Equal Pay Act and Fair Employment and Housing Act. Additionally, Activision Blizzard has previously settled with the U.S. Equal Employment Opportunity Commission.
Activision Blizzard’s Stance on the Allegations
While Activision Blizzard has not issued recent comments, the company previously refuted the charges, citing a board investigation that found them to be unsubstantiated.
Activision Blizzard’s Commitment to Diversity and Inclusion
Activision Blizzard has made strides in promoting inclusion, such as appointing its first chief diversity officer and participating in initiatives to support under-represented women in tech.
Financial Implications of the Settlement
The proposed agreement allocates a specific amount for direct relief to employees and coverage of litigation expenses, with the majority going into a settlement fund for compensating workers.
Further Steps for Activision Blizzard
In addition to financial compensation, the settlement mandates that an independent consultant be hired to review and suggest improvements to Activision Blizzard’s compensation, promotion, and training practices.
Historical Context of the Settlement
If sanctioned, this agreement will be recalibrated as the CRD’s second-largest, trailing only behind the $100 million settlement with Riot Games for gender discrimination.
Expected Outcomes and Reactions
Despite the substantial settlement with Activision Blizzard, the CRD had initially sought a higher compensation figure, reflecting the significant extent of the company’s alleged liabilities
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