Microsoft settles California leave discrimination case for $14 million

Microsoft settles California leave discrimination case for $14 million, even though it denies any wrongdoing. Microsoft will also implement measures, including hiring an independent consultant and providing training to managers, to ensure fair treatment for employees taking leave.

What happened?

Microsoft will be paying $14 million to settle a discrimination case where it is alleged that the company has illegally penalized workers taking medical and family care leave. The settlement, pending a judge’s approval, will conclude a lengthy investigation by the Civil Rights Department, and the money will go to the affected workers.

The California Civil Rights Department had filed accusations in state court against the tech giant, claiming that since 2017, the company has been unfairly penalising its California employees for taking parental, disability, pregnancy, and family-care leave by withholding raises, promotions, or stock awards. According to the department, many of the affected workers were women and people with disabilities, who received lower performance reviews, thereby impacting their overall career growth.

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Microsoft, however, stated that they did nothing wrong and disagreed with the accusations. Nonetheless, alongside the $14.4 million settlement, Microsoft has agreed to bring in an independent consultant to ensure their policies are fair to employees taking leave. The consultant will also ensure that workers can voice their concerns without any repercussions. Additionally, Microsoft will train managers and HR staff to prevent future workplace violations of employment rights.