Posted in: Games, Riot Games, Video Games | Tagged: gender discrimination, lawsuit, Riot Games, Sexual Discrimination, sexual harassment

Riot Games Pays Out $100M In Gender Discrimination Settlement

Riot Games has ended a long-standing litigation today as the company has paid out a $100 million settlement in a gender discrimination lawsuit. The lawsuit itself dates back to November 2018 when then employees Melanie McCracken and Jess Negrón claimed the company has a culture of sexism and discrimination, which stemmed from an in-depth report from Kotaku that August. The state of California also launched two different investigations into the matter while the lawsuit was happening, and at the time, Riot was prepared to settle for $10 million in 2019. However, California's Department of Fair Employment and Housing (DFEH) stepped in and blocked the agreement, arguing that the victims should be entitled to as much as $400 million, which ended up dragging the case out another two years. Upon the final settlement, the DFEH posted the news to their website. Here's a couple of quotes from that report.

"This historic agreement reflects California's commitment to strategic and effective government enforcement of the State's robust equal-pay, anti-discrimination, and antiharassment laws," said DFEH Director Kevin Kish. "If entered by the court, this decree will compensate employees and contractors affected by sex discrimination and harassment, ensure lasting change in this workplace, and send the message that all industries in California, including the gaming industry, must provide equal pay and workplaces free from discrimination and harassment."

"My office determined that Riot's proposed initial PAGA settlement with private counsel was insufficient and did not adequately deter the company from violating women's right to equal pay for equal work," said California Labor Commissioner Lilia García-Brower. "Under the Equal Pay Act, employers who pay women less than their male counterparts for substantially similar work are violating the law. Collaborating with DFEH produced a proposed enforcement outcome that holds the employer accountable, compensates the workers, and will result in the largest PAGA settlement DLSE has obtained to date."

Late last night, Riot emailed the company about the decision. As part of the settlement, Riot Games is required to be monitored by a third party for the next three years, which will oversee human resource complaints and determine whether or not the entire staff (regardless of gender) are being paid fairly. That third party requires approval of both Riot and the DFEH, so it may be a minute until we hear who that person will be. If that individual catches Riot discriminating again, they can recommend changes to implement into the company bu which a judge can enforce upon them. We'll keep an eye on that story and see how it develops.

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