Microsoft has agreed to pay $14.4 million to settle allegations of retaliation and discrimination against employees who took protected leave, including pregnancy and disability leave, according to the California Civil Rights Department (CRD). The CRD announced that it had entered into a binding settlement with Microsoft, resolving a long-running case against the tech giant.
The allegations against Microsoft included claims that employees who took certain types of protected leave received lower bonuses or unfavorable performance reviews, which affected their eligibility for promotions and merit-based pay raises. The CRD Director, Kevin Kish, stated that Microsoft failed to support workers when they needed to care for themselves or their families.
In response, a spokesperson for Microsoft denied any wrongdoing and stated that the company is committed to creating an environment that empowers employees to take leave when needed. Microsoft has agreed to a range of non-monetary terms as part of the settlement, including hiring an independent consultant to ensure that managers do not consider protected leave when making decisions about rewards and promotions. Managers and HR personnel will also undergo training on prohibitions against discrimination.
The monetary relief applies to employees in California who used protected leave between 2017 and 2024. Each eligible employee will receive a base payment of $1,500, with additional compensation based on factors like length of employment and salary. The settlement also allocates funds for the CRD’s enforcement efforts.
The proposed agreement does not require covered individuals to take any action at this time. Once approved by a court, covered workers will receive information from a settlement administrator on how to collect their compensation.
This settlement is significant as it highlights the importance of protecting employees’ rights to take leave without facing negative consequences at work. It sends a message that companies should support their employees during times when they need to care for themselves or their families. By agreeing to the terms of the settlement, Microsoft is taking steps to rectify the alleged discrimination and ensure a more inclusive work environment.
It is worth noting that this case falls under various laws, including California’s Fair Employment and Housing Act, the California Family Rights Act, California’s Pregnancy Disability Leave law, Title VII of the Civil Rights Act of 1964, and the Americans with Disabilities Act. By addressing discrimination related to protected leave under these laws, the settlement has broader implications for companies across different industries.
Overall, this settlement serves as a reminder that companies must prioritize the well-being of their employees and be proactive in preventing discrimination. It also emphasizes the importance of enforcing anti-discrimination laws to protect workers’ rights.
