Microsoft Settles Worker Leave Probe for $14M

On Wednesday, a California commission said that Microsoft Corp. will pay $14 million to settle allegations that it unfairly penalized workers who took medical or family leave

The California Civil Rights Department accused the tech giant of retaliating against its California-based employees who have used parental, disability, pregnancy, and family-care leave since 2017 by denying them raises, promotions, and stock awards in official filings in state court.

The department stated that the performance review scores of these workers, who were disproportionately women and individuals with disabilities, were lower. This, in turn, resulted in a reduction in their pay and opportunities for promotions and a change in their career trajectory.

According to the agency, the Civil Rights Department’s multiyear investigation would be resolved by the settlement, which is subject to the approval of a state magistrate.

In the settlement agreement, Microsoft refuted any malfeasance. A spokesperson for the firm rejected the agency’s allegations in a statement.

“Microsoft is dedicated to fostering an environment that enables our employees to take leave as needed and offers the necessary support and flexibility to enable them to flourish both professionally and personally,” stated the spokesperson.

In recent years, the state’s Civil Rights Department has announced a series of substantial settlements, primarily in the context of sex discrimination cases.

These include a $100 million agreement with video game developer Riot Games in 2021, a $54 million settlement with Activision Blizzard last year, and a $15 million settlement with Snapchat’s parent company, Snap, last month.

The agency accused Microsoft of discriminating against women and individuals with disabilities, as well as interfering with the right of employees to take leave.

The settlement’s implications regarding the number of laborers who could benefit were unclear—located in Redmond, Washington. According to court filings, Microsoft has approximately 6,700 employees in California.

In a statement, Kevin Kish, the director of the Civil Rights Department, stated that Microsoft neglected to assist employees who required time to care for themselves and their families.

“The settlement announced today will provide direct relief to impacted workers and safeguard against future discrimination at the company,” Kish asserted.

In addition to the $14.4 million compensation, Microsoft has consented to employing an independent consultant to guarantee that company policies do not discriminate against employees who take leave, that employees can file complaints, and to provide training to managers and human resources personnel.