Activision Blizzard to Pay $18 Million to Resolve EEOC Sexual Harassment Suit

A federal judge in California recently approved an $18 million agreement between video game publisher Activision Blizzard and the Equal Employment Opportunity Commission (EEOC) to resolve workplace sexual harassment, pregnancy discrimination and retaliation claims.

EEOC Chair Charlotte Burrows said she is encouraged when employers agree to work with the EEOC to address discrimination in their workplaces.

"Combating sexual harassment remains a top priority for the EEOC, and we will vigorously enforce federal laws against it," she said.

Activision Blizzard CEO Bobby Kotick called the court's approval of the settlement "an important step in ensuring that our employees have mechanisms for recourse if they experienced any form of harassment or retaliation."

Kotick added, "Our goal is to make Activision Blizzard a model for the industry, and we will continue to focus on eliminating harassment and discrimination from our workplace."

Notably, the California-based company is still facing similar state-law sex discrimination claims (as well as pay equity claims) brought by the California Department of Fair Employment and Housing (DFEH).

Company Commits to Taking Corrective Measures

The agreement covers workers who were employed in the U.S. by Activision Blizzard and related companies from Sept. 1, 2016, to the present and experienced sexual harassment, pregnancy discrimination or related retaliation.

In addition to the monetary settlement, the company agreed to take specific steps to combat workplace harassment, discrimination and retaliation, such as:

• Conducting audits of complaints to determine the effectiveness of the internal complaint-resolution process.
• Submitting to unannounced audits of current employees to assess whether sexual harassment, pregnancy discrimination and related retaliation issues are being addressed properly.
• Allowing an equal employment opportunity (EEO) consultant to oversee and review company policies and procedures for handling complaints.  
• Providing anti-harassment and anti-discrimination training that includes discussions on bystander intervention and civility.
• Ensuring that human resources representatives receive training on workplace investigations.
• Evaluating disciplinary procedures to ensure effective corrective and preventive measures are taken.
• Adding an EEO component to the performance review system for managers, supervisors and human resources representatives.
• Maintaining comprehensive record-keeping and reporting mechanisms.

"We recognize Activision Blizzard for agreeing to a substantial injunctive relief that reflects its commitment to being a change agent in an industry that struggles with harassment in the workplace," said Anna Park, regional attorney for the EEOC's Los Angeles District Office. "We encourage others in the industry to examine their practices to ensure a workplace free of harassment and retaliation."

Controversy Continues in California

Activision Blizzard's agreement with the EEOC covers claims brought under Title VII of the Civil Rights Act of 1964, but it does not resolve the DFEH's claims, which were brought in state court under the California Equal Pay Act and the Fair Employment and Housing Act.

"All employers should ensure that their employees are being paid equally and take all steps to prevent discrimination, harassment and retaliation," said DFEH Director Kevin Kish. "This is especially important for employers in male-dominated industries, such as technology and gaming."

The DFEH's lawsuit alleges that women at Activision Blizzard were subjected to "constant sexual harassment, including groping, comments, and advances." The lawsuit also alleges that the company's leadership team and human resources representatives knew about the harassment, failed to take reasonable steps to prevent the unlawful conduct and retaliated against female workers who complained.

In October 2021, the DFEH objected to the EEOC's proposed settlement with the company—arguing that the agreement was inadequate and would negatively impact the department's efforts to enforce California employment laws.

But Judge Dale Fischer of the U.S. District Court for the Central District of California found the EEOC's agreement to be "fair, reasonable and adequate" and said it would "advance the public interest."

California workers who choose to participate in the EEOC settlement will waive their right to take part in the DFEH's lawsuit as it relates to sexual harassment, pregnancy discrimination and pregnancy—but they will still be able to join claims (such as equal pay claims) that are not covered by the EEOC's agreement with Activision Blizzard, The Washington Post reported.

"You don't get to double dip. That's the reality of these settlements," Park told the Post. "There's been a lot of confusion around that. … We want to encourage everyone to make a very informed decision."