Riot Games settled a $100 million class-action lawsuit accusing the studio of discrimination, sexual harassment, and unequal pay.
According to the agreement, Riot will distribute a minimum of $80 million among 2,365 women employed at the company—full-time, part-time, and temporarily—from November 2014 to present.
That includes $4 million in penalties under the Private Attorney General Act (PAGA)—one of the largest such penalties assessed in the California Division of Labor Standards Enforcement (DLSE) agency’s history. The remaining $20 million goes toward attorneys’ fees.
The three-year decree, made by California’s Department of Fair Employment and Housing (DFEH), also requires Riot to create an $18 million cash reserve to make pay adjustments and fund diversity, equity, and inclusion programs. Additional changes include independent analysis of Riot’s pay, hiring, and promotion practices, as well as third-party monitoring of sexual harassment and retaliation at the firm’s California offices.
DFEH in October 2018 notified Riot of its investigation into allegations of sexual harassment, discrimination, and retaliation against women employees and temporary agency contractors. The game maker responded with a $10 million settlement offer, rebuffed by DFEH and DLSE. “Under the Equal Pay Act, employers who pay women less than their male counterparts for substantially similar work are violating the law,” California Labor Commissioner Lilia García-Brower said in a statement.
This settlement, according to DFEH director Kevin Kish, will “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.”
Eligible employees can keep an eye on the Department of Fair Employment and Housing website for more information on possible compensation.
