Microsoft has agreed to pay $14 million to settle allegations of retaliation and discrimination against employees who took protected leave for reasons such as pregnancy and disability, according to California civil rights organization.
The California Department of Civil Rights announced on July 3 that it had reached a binding settlement agreement with Microsoft, outlined in a proposed consent decree, to address claims made by employees of the tech giant of retaliation and discrimination for taking protected leave.
Once the consent decree is approved by the court, the long-running lawsuit against Microsoft in California will be dismissed, resolving years of investigation into allegations that the company retaliated and discriminated against employees using protected leave including parental leave, disability leave, pregnancy leave, and family care-taking leave.
The civil rights organization stated that Microsoft employees taking certain types of protected leave were reportedly receiving lower bonuses or unfavorable performance evaluations, affecting their promotions and eligibility for preferential salary increases.
Director of the Civil Rights Bureau, Kevin Kish, said in a statement, “Whether it’s caring for a newborn or tending to one’s health, employees generally have the right to take leave without fearing consequences in their work; Microsoft is alleged to have penalized employees taking protected leave, failing to support them when they need to care for themselves or their families.”
A spokesperson for the software company stated that Microsoft denies any wrongdoing, emphasizing their commitment to creating an environment where employees can take leave when needed and providing necessary flexibility and support for their overall well-being, both professionally and personally.
The Epoch Times has reached out to Microsoft for further comments.
The discrimination claims addressed in this settlement deal involve various issues related to protected leave, with legal frameworks including the Fair Employment and Housing Act, 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.
Monetary relief applies to employees who used protected leave in California between 2017 and 2024. Individuals who worked at Microsoft in California during the period from May 2017 until the date of signing the settlement agreement may be eligible for financial compensation, with $14.2 million designated for specific purposes, while the remaining portion will fund the enforcement efforts of the civil rights bureau.
As part of the compensation and settlement agreement, each eligible employee will receive a base compensation of $1,500, along with additional compensation based on factors such as years of service and salary.
In addition to agreeing to pay $14 million, Microsoft has committed to a series of non-monetary terms, including hiring an independent consultant to ensure that management does not involve protected leave in decisions regarding annual rewards and promotions. The consultant will also assist employees in reporting discrimination or retaliation complaints and will produce annual compliance reports. Furthermore, all Microsoft managers and HR personnel will receive training on prohibiting such discrimination.
Director Kish stated, “The settlement announced today will provide direct relief to affected employees and prevent future discriminatory practices at the company; we commend Microsoft for coming to the negotiating table and agreeing to make necessary changes to protect workers in California.”
The California organization noted that individuals covered by the proposed agreement currently do not need to take any action. Once the proposed agreement is approved by the court, protected employees will receive information from the settlement administrator on how to claim compensation.