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Microsoft has agreed to pay $14.4 million to settle a lawsuit in California alleging the company retaliated against employees who took legally protected time off. The settlement was announced by California’s Civil Rights Department on Wednesday and is pending approval by a state judge.
Key details:
- Settlement Amount: $14.4 million
- Affected Group: California workers who took parental leave, family care-taking leave, or disability leave from 2017 to the present
- Settlement Use: Funds will be distributed to affected employees who participate in the settlement.
The complaint alleges that Microsoft’s policies led to retaliation against employees who used protected leave, impacting their bonuses, promotions, stock awards, and merit increases. This issue is reportedly exacerbated by the fact that workers utilizing protected leave are disproportionately women and people with disabilities, which has been argued to create a discriminatory adverse impact.
Microsoft, headquartered in Redmond, Washington, employs approximately 6,700 people in California out of a total workforce of 221,000. The company has made efforts under CEO Satya Nadella to diversify its leadership and address issues related to harassment and discrimination. Women held 31.2% of managerial roles at Microsoft in 2023, up from 27.6% in 2019.
Despite the settlement, Microsoft disputes the agency’s claims. The company emphasizes its commitment to supporting employees’ leave needs and fostering a supportive work environment.
As part of the settlement, Microsoft will:
- Provide Training: Training will be given to direct and second-level managers and human resources staff in California on handling bonuses and merit increases.
- Adjust Policies: Managers will be instructed not to factor in protected leave when assessing employee “impact.”
- Compliance Monitoring: APTMetrics, an external consultant, will oversee compliance with the settlement terms.
The company’s spokesperson reiterated Microsoft’s commitment to creating a supportive work environment and supporting employees’ rights.