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Microsoft will pay $14.4 million To resolve lawsuits alleging retaliatory and discriminatory practices against California workers who took protected leave, including family care, childcare, disability and pregnancy leave. The California Civil Rights Division (CRD) launched an investigation into Microsoft in 2020 to see whether the tech giant violated California’s Fair Employment and Housing Act, Americans with Disabilities Act and other laws. The proposed agreement is subject to court approval.
The CRD alleged that employees who took protected leave “received reduced bonuses and less favorable performance reviews, which resulted in reduced eligibility for salary increases, stock-based compensation, and promotions.” The California Labor Department also alleged that Microsoft “failed to take sufficient steps to prevent discrimination from occurring, altering the career trajectories of women, people with disabilities, and other employees at the company, ultimately leaving them behind.”
Microsoft’s payments will be made to affected workers for the period from May 2017 through the date of court approval. The company will also have to hire an independent consultant to make recommendations on policies and practices and ensure that managers do not use protected leave as a determining factor when determining compensation or promotions. Managers and the human resources department will have to undergo specific discrimination training. The independent consultant will also work with Microsoft to ensure that employees have an easy way to file a complaint if they feel that taking protected leave has affected their status with the company. Additionally, the independent consultant will be required to submit an annual compliance report showing that Microsoft is complying with the agreement.
“The settlement announced today will provide direct relief to affected workers and provide protections against future discrimination at the company,” CRD Director Kevin Kirsch said in a statement. “We applaud Microsoft for coming to the negotiating table and agreeing to make necessary changes to protect California workers.”