Microsoft agrees to $14 million California pay discrimination settlement


Microsoft is set to pay $14.4 million to settle a case alleging retaliation and discrimination against California employees who took protected leave such as family care, parental, disability and pregnancy leave. The California Department of Civil Rights (CRD) launched an investigation into Microsoft in 2020, investigating whether the tech giant violated laws such as California’s Fair Employment and Housing Act. Americans with Disabilities Act. The proposed settlement is subject to court approval.

CRD alleged that employees who took protected leave “received lower bonuses and unfavorable performance reviews, which in turn harmed their eligibility for merit increases, stock awards and promotions.” The California department also alleged that Microsoft “failed to take adequate measures to prevent discrimination, altering the career trajectory of women, people with disabilities and other employees at the company, ultimately leaving them behind.”

Microsoft payment It will go to affected employees from May 2017 to a court-approved date. The company must also retain an independent consultant for policy and practice recommendations, ensure that managers do not use protected leave when deciding on bonuses and promotions – managers and HR must pass special tests. discrimination training. The independent consultant will also work with Microsoft to confirm that employees have a simple way to file a complaint if they feel protected leave is affecting their position at the company. In addition, the independent consultant must submit an annual compliance report documenting Microsoft’s compliance with the agreement.

“The settlement announced today will provide immediate relief to affected employees and protect against future discrimination at the company,” said CRD Director Kevin Kirsch. “We applaud Microsoft for coming to the table and agreeing to make the changes necessary to protect workers in California.”



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