Microsoft has recently agreed to a settlement of $14.2 million to address claims of discriminatory practices against employees who took protected time off but were allegedly punished for doing so. The California Civil Rights Department has been investigating whether Microsoft violated the California Fair Employment and Housing Act and the Americans with Disabilities Act since 2020.
The investigation revealed that Microsoft employees who took protected leave, such as family care, disability, and pregnancy leave, experienced lower bonuses and negative performance reviews. These unfavorable evaluations also impacted workers’ chances for merit increases, stock awards, and promotions within the company.
The Civil Rights Department found that Microsoft’s failure to prevent discrimination had a significant impact on the career progression of women, people with disabilities, and other employees. Approximately 3% of Microsoft’s workforce in California, totaling 6,700 out of 221,000 employees, were affected by these discriminatory practices.
CRD Director Kevin Kish stated that the settlement will provide direct relief to affected employees and help prevent future discrimination at the company. Microsoft has agreed to pay $14.2 million in direct relief to workers and an additional $225,000 to cover enforcement costs associated with the investigation.
Employees who took protected leave and worked at Microsoft in California between May 2017 and the settlement agreement date may be eligible for compensation. The company has not yet commented on the case.
In light of this settlement, it is essential for companies to ensure that their policies and practices comply with employment laws and do not discriminate against employees who exercise their rights to protected leave. Discriminatory practices can have a significant impact on employee morale, retention, and overall company culture. It is crucial for organizations to create a work environment that values and respects the well-being of all employees, regardless of their need for protected time off.
