Microsoft has agreed to pay $14.4 million to settle a case in California over allegations that the company retaliated against employees who took legally protected time off. The California Civil Rights Department announced the proposed settlement on Wednesday, which will be distributed to California workers who took parental, family care-taking, or disability leave from 2017 to the present and choose to participate. The settlement highlights claims that Microsoft’s policies had a discriminatory impact on women and people with disabilities.
The complaint accused Microsoft of not preventing managers from considering protected leave when assessing an employee’s “impact,” a factor affecting bonuses, promotions, stock awards, and merit increases. Microsoft, which employs around 6,700 people in California, has been working to diversify its upper ranks and address issues related to harassment and discrimination. Under CEO Satya Nadella, the company has seen an increase in the percentage of women at executive and managerial levels.
Despite disputing the agency’s claims, Microsoft has committed to providing training for managers and HR staff in California, ensuring that protected leave is not considered in impact decisions. A consultant, APTMetrics, will monitor compliance with the settlement terms. Microsoft emphasized its commitment to supporting employees in taking leave and thriving professionally and personally.
