SAN FRANCISCO (CN) — The California Civil Rights Department announced on Wednesday that Microsoft agreed to pay $14.425 million to settle claims that the tech giant violated state and federal law by retaliating and discriminating against California workers based on their use of protected leave.
“Whether it’s to look after a newborn child or take care of your own health, workers generally have the right to take time off without worrying about consequences at work. By allegedly penalizing employees for taking protected forms of leave, Microsoft failed to support workers when they needed to care for themselves or their families,” California Civil Rights Department Director Kevin Kish said in a statement. “The settlement announced today will provide direct relief to impacted workers and safeguard against future discrimination at the company.”
The Civil Rights Department accused Microsoft in its in complaint filed Santa Clara County Superior Court on Monday of discriminating against employees who took protected leave — particularly women and people with disabilities — by providing lower bonuses, unfavorable performance reviews and limited promotion opportunities.
The department also said that Microsoft managers commented negatively about employees who took leave, and that workers reported concerns with retaliation after requesting or taking protected leave
These practices, the department claimed, negatively impacted the career trajectories of affected employees, leaving them behind in terms of compensation and advancement.
Microsoft employs about 221,000 people in the U.S., and though its headquarters are located in Redmond, Washington, it has offices in 14 California communities where they employ 6,700 workers, mostly in the Bay Area in San Francisco, Palo Alto and Mountain View.
As part of the settlement, Microsoft did not admit to any wrongdoing but agreed to retain an independent consultant to review and recommend changes to Microsoft’s personnel policies, ensuring that protected leave does not impact decisions on annual rewards and promotions.
“Microsoft is committed to an environment that empowers our employees to take leave when needed and provides the flexibility and support necessary for them to thrive professionally and personally. While we believe the agency’s allegations are inaccurate, we will continue to listen, learn, and support our employees,” Microsoft Spokesperson Sarah Naciri wrote in a statement.
A worker is eligible for compensation if they worked for Microsoft in California in 2017 or later for at least three months and took a leave of absence protected under state or federal law. The department will provide further information and updates on its website once the court approves the settlement.
The settlement comes after a multi-year investigation by the department into Microsoft’s practices.
In addition to hiring an independent consultant, Microsoft also agreed to working with the consultant to ensure that employees are aware of how to file complaints if they believe discrimination or retaliation has occurred, provide training for managers and human resources personnel on the prohibitions against discrimination based on the use of protected leave and report annually on compliance with the settlement, including the handling of discrimination complaints.
Though most of the money will go to employees, Microsoft also agreed to pay $225,000 to to the department to cover the its enforcement costs.
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