Microsoft agrees to pay $14 million to settle allegations of California workplace violations

Microsoft has reached a settlement with the California Department of Civil Rights (CRD) for more than $14 million ($14,425,000) to resolve employment law violations, in accordance with CRD.

Microsoft has been accused of discriminating against employees who take advantage of “protected leave” provisions, which are protected under both state and federal law, including parental, disability, pregnancy and family care leave.

As part of the settlement, Microsoft agreed to take preventive measures to avoid future discrimination and provide financial compensation to employees who took protected leave between 2017 and 2024. The court has not yet approved the settlement.

The settlement follows a multi-year investigation into Microsoft in which CRD alleged that employees who used protected leave received lower bonuses and negative performance reviews.

The CRD also suggested that Microsoft “did not take sufficient action” to prevent this type of discrimination in the workplace, which ultimately affected the “career path” of women, people with disabilities and others.

The settlement is intended to redress these harms and, if approved by the court, will require Microsoft to pay a specified amount to cover direct damages to the employees and the costs of enforcing the CRD.

The bill would require an independent consultant to oversee Microsoft’s human resources policies, instruct employees on the proper grievance process and assist in administering the annual settlement compliance report.

It will also ensure that managers and human resources staff receive specific training on discrimination in the use of protected leave.

“Whether it’s to care for a newborn or to take care of their own health, employees have the right to take time off without fear of repercussions at work,” said CRD Director Kevin Kish.

“By allegedly penalizing employees for taking protected leave, Microsoft failed to support employees when they needed to care for themselves or their families. The settlement announced today will provide direct relief to injured employees and protect against future discrimination at the company,” he added.

Kish added that he praised Microsoft for “engaging in conversations” on the matter and agreeing to implement the protective changes set forth in the settlement.

CRD determined that there is no need for any action by employees covered by the proposed settlement and that covered employees will receive further updates contingent upon court approval.

ITPro reached out to Microsoft for comment.