Activision Blizzard Reaches $54.8M Settlement to Resolve Pay Disparity, Discrimination Claims

Ashley Cullins
·2 min read
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Activision Blizzard has reached an approximately $55 million settlement with California’s Civil Rights Department to resolve pay disparity and discrimination claims, the agency announced on Friday.

The gaming giant behind Call of Duty and World of Warcraft had been accused of discriminating against women denying them promotion opportunities and paying them less than men for doing substantially similar work.

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As part of the settlement, and concurrent with submitting the proposed consent decree to the court for approval, the agency is withdrawing its allegations of systemic sexual harassment. In the settlement agreement, which has been reviewed by THR, the CRD expressly acknowledged that “no court or independent investigation has substantiated any allegations [that] there has been systemic or widespread sexual harassment at Activision Blizzard.”

According to the CRD’s announcement, the proposed consent decree is being finalized for submission to the court but the key points include that Activision Blizzard will:

  • Pay approximately $54,875,000 to cover direct relief to workers and litigation costs. Of the total, approximately $45,750,000 will go to a settlement fund dedicated to compensating workers.

  • Distribute any excess settlement funds to charitable organizations focused on advancing women in the video game and technology industries or promoting awareness around gender equality issues in the workplace.

  • Retain an independent consultant to evaluate and make recommendations regarding Activision Blizzard’s compensation and promotion policies and training materials.

  • Continue its efforts regarding inclusion of qualified candidates from underrepresented communities in outreach, recruitment, and retention.

Women who worked as employees or contractors Activision Blizzard in California between October 12, 2015 and December 31, 2020 could be eligible to receive settlement funds. Once the agreement is approved by the court, next steps will become available to those workers.

As part of the settlement, the CRD will also dismiss its appeal challenging Activision Blizzard’s 2021 settlement with the EEOC. That agreement included $18 million for workers who experienced sexual harassment, pregnancy discrimination or related retaliation during their employment.

Activision Blizzard on Monday sent THR a statement about the settlement. It reads, in part:

“We appreciate the importance of the issues addressed in this agreement and we are dedicated to fully implementing all the new obligations we have assumed as part of it. We want our employees to know that, as the agreement specifies, we are committed to ensuring fair compensation and promotion policies and practices for all our employees, and we will continue our efforts regarding inclusion of qualified candidates from underrepresented communities in outreach, recruitment, and retention.

We are also gratified that the CRD has agreed to file an amended complaint that entirely withdraws its 2021 claims alleging widespread and systemic workplace harassment at Activision Blizzard. … As the CRD also expressly acknowledged in the agreement, ‘no court or independent investigation has substantiated any allegations that there has been systemic or widespread sexual harassment at Activision Blizzard.‘”

Dec. 18, 3:30 p.m.: Updated with a new statement from Activision Blizzard and information from the settlement agreement.

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