Microsoft agrees to $14 million California pay discrimination settlement

Microsoft is set to pay $14.4 million to resolve a case alleging retaliatory and discriminatory practices in opposition to California employees who took protected depart, akin to household care, parental, incapacity and being pregnant depart. The Civil Rights Division of California (CRD) launched an investigation into Microsoft in 2020, wanting into whether or not the tech big violated legal guidelines akin to California’s Truthful Employment and Housing Act and the Americans with Disabilities Act. The proposed settlement is topic to court docket approval.

CRD claimed that employees who took protected depart “obtained decrease bonuses and unfavorable efficiency critiques that, in flip, harmed their eligibility for benefit will increase, inventory awards, and promotions.” The California Division additionally alleged that Microsoft “did not take ample motion to forestall discrimination from occurring, altering the profession trajectory of girls, individuals with disabilities, and different staff who labored on the firm, finally leaving them behind.”

Microsoft’s payment will go towards employees impacted from Might 2017 till the date of the court docket’s approval. The corporate should additionally retain an impartial marketing consultant for coverage and follow suggestions, making certain that managers do not use protected depart as a determinant when deciding rewards and promotions — managers and HR might want to bear particular discrimination coaching. The impartial marketing consultant can even work with Microsoft to substantiate that staff have an easy technique to lift complaints in the event that they really feel taking protected depart has influenced their standing within the firm. Moreover, the impartial marketing consultant should present an annual compliance report reflecting Microsoft’s following of the settlement.

“The settlement introduced in the present day will present direct aid to impacted employees and safeguard in opposition to future discrimination on the firm,” Kevin Kirsh, CRD’s director, said. “We applaud Microsoft for coming to the desk and agreeing to make the adjustments mandatory to guard employees in California.”