Microsoft has agreed to pay $14.4 million to settle claims of leave discrimination brought by the California Civil Rights Department (CRD). The allegations centered around the tech giant's treatment of employees who took legally protected leaves, such as parental, disability, pregnancy, and family care leave. These employees reportedly faced reduced bonuses, negative performance evaluations, and limited opportunities for career advancement, which are violations of both state and federal laws.
The settlement marks the end of a multi-year investigation by the CRD, which found that Microsoft engaged in discriminatory practices that adversely affected the career trajectories of employees who utilized their right to protected leave. Kevin Kish, the director of the CRD, stated, "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. The settlement announced today will provide direct relief to impacted workers and safeguard against future discrimination at the company".
Allegations and Settlement Details
The CRD's investigation revealed that employees who took protected leave were often given lower bonuses and unfavorable performance reviews, which hindered their chances for merit raises, stock grants, and promotions. These practices were particularly detrimental to women and people with disabilities, who are more likely to take such leaves. The settlement includes $14.2 million in direct relief to affected employees and an additional $225,000 to cover the department's enforcement costs.
As part of the settlement, Microsoft has committed to several measures aimed at preventing future discrimination. These include hiring an independent consultant to review and recommend changes to the company's personnel policies, ensuring that protected leave does not negatively impact decisions on annual rewards and promotions. The company will also 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.
Microsoft's Response and Future Steps
While Microsoft did not admit to any wrongdoing, the company has expressed its commitment to fostering an inclusive work environment. "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," said Microsoft Spokesperson Sarah Naciri.
The settlement also stipulates that Microsoft must ensure employees are aware of how to file complaints if they believe discrimination or retaliation has occurred. This includes providing clear guidelines and training to managers and HR personnel to prevent any form of retaliation against employees who take protected leave.
Broader Implications
This settlement is significant not only for the financial compensation it provides but also for the systemic changes it mandates. By agreeing to these terms, Microsoft sets a precedent for other companies regarding the importance of adhering to laws protecting employee rights. The measures included in the settlement aim to create a more equitable workplace where employees can take necessary leave without fear of negative repercussions.
Kevin Kish praised Microsoft's willingness to make these changes, stating, "We applaud Microsoft for coming to the table and agreeing to make the changes necessary to protect workers in California". This sentiment underscores the broader impact of the settlement, which aims to ensure that all employees, regardless of their need for protected leave, can thrive in their professional roles.
