Microsoft Will Pay $14M To Settle Allegations It Discriminated Against Employees Who Took Leave

SAN FRANCISCO — The California Civil Rights Department stated Wednesday that Microsoft Corp. has agreed to pay $14.4 million to settle accusations that the global software company penalized and discriminated against employees who took protected leave, such as parental or disability leave.

The proposed payment follows a multi-year probe by the California agency. The consent decree must be approved in state court in Santa Clara County, where the Redmond, Washington-based corporation maintains an office.

The state agency, which began its inquiry in 2020, claimed that employees who took time off work due to pregnancy or disability, to connect with a new infant or to care for a sick family member earned smaller bonuses and poor performance evaluations.

These variables, in turn, hindered employees’ eligibility for merit pay increases and promotions, and the practice disproportionately affected women and individuals with disabilities, the department stated.

Microsoft | AP News Image

Microsoft Will Pay $14M To Settle Allegations It Discriminated Against Employees Who Took Leave

In a statement, civil rights department head Kevin Kish praised the corporation “for coming to the table and agreeing to make the changes necessary to protect workers in California.”

Microsoft said in a statement that the agency’s charges were false but “will continue to listen, learn, and support our employees.”

As part of the proposed settlement, Microsoft will implement measures to prevent future discrimination, such as enhanced manager training. An outside consultant will track and report on the company’s compliance.

The majority of the settlement money, $14.2 million, will go to injured workers. Covered employees worked for Microsoft between May 13, 2017, and a yet-to-be-determined court approval date for the settlement, and they took at least one leave protected by state or federal law.

Microsoft | PixaBay Image

Microsoft Will Pay $14M To Settle Allegations It Discriminated Against Employees Who Took Leave

Each qualifying employee will get a base payment of $1,500, with additional funds available depending on salary and length of employment.

According to the state civil rights agency, Microsoft employs over 221,000 people worldwide, with nearly 7,000 based in California. The agency does not estimate how many workers will get paid.

SOURCE – (AP)