Microsoft Corporation (MSFT.O) has agreed to pay $14 million to settle claims by a California agency that it unlawfully penalized employees who took medical or family-care leave, the agency announced on Wednesday.
The California Department of Fair Employment and Housing accused the tech giant in state court filings of retaliating against its California-based employees who used parental, disability, pregnancy, and family-care leave since 2017. Allegations included denying them salary increases, promotions, and stock awards. The affected employees, who were predominantly women and individuals with disabilities, reportedly received lower performance ratings, impacting their compensation and career advancement opportunities, according to the department.
Recent years have seen the California Department of Fair Employment and Housing announce significant settlements, primarily in cases of sex discrimination. These include a $100 million agreement with videogame maker Riot Games in 2021, a $54 million settlement with Activision Blizzard last year, and a $15 million settlement with Snapchat parent Snap (SNAP.N) announced last month.
The agency accused Microsoft of engaging in sex and disability discrimination and of interfering with employees’ rights to take leave. The number of employees who stand to benefit from the settlement was not specified. Microsoft, headquartered in Redmond, Washington, has approximately 6,700 employees in California, as per court filings.
Kevin Kish, director of the California Department of Fair Employment and Housing, criticized Microsoft for failing to support employees needing time to care for themselves and their families. He highlighted that the settlement aims to provide relief to affected workers and prevent future discrimination at the company.
In addition to the $14.4 million payout, Microsoft has agreed to engage an independent consultant to ensure company policies do not discriminate against employees taking leave, establish procedures for employees to raise concerns, and conduct training for managers and human-resources personnel.
