Microsoft has good news for workers who were 'illegally penalised' for taking leaves

Microsoft has reached a settlement with the California Civil Rights Department to address the accusations that the global software giant engaged in discrimination against employees who took protected leave, including parental leave and leave for disabilities.

As a part of the settlement, most of the settlement money will go toward harmed workers, whom the California-based agency helped to file a lawsuit against the company.

In state court filings (seen by the news agency Reuters), the agency claimed that Microsoft retaliated against California-based employees who took parental, disability, pregnancy, and family-care leave since 2017.


How these workers were affected
These workers, who were largely women and people with disabilities, allegedly faced denial of raises, promotions and stock awards, the filing noted. Additionally, they received lower performance review scores, which impacted their pay, promotional opportunities and career progression, the department said.


The settlement, pending approval by a state judge, would conclude a multiyear investigation by the Civil Rights Department. However, Microsoft has denied any wrongdoing, with a company spokesperson stating that they disagreed with the agency's allegations.

The exact number of affected workers remains unclear, but court filings indicate Microsoft has roughly 6,700 employees in California.

According to Kevin Kish, director of the Civil Rights Department, Microsoft failed to provide adequate support to employees who needed time for themselves or their families.

“The settlement announced today will provide direct relief to impacted workers and safeguard against future discrimination at the company,” Kish said.


What the company said
“Microsoft is committed to an environment that empowers our employees to take leave when needed and provides the flexibility and support necessary for them to thrive professionally and personally,” a spokesperson said to Reuters.

In addition to the $14.4 million settlement, Microsoft has also agreed to take several steps to prevent further discrimination. This includes hiring an independent consultant to review company policies and ensure they don't disadvantage employees who take leave.

The company will also provide training to managers and HR personnel and establish a system for employees to easily raise complaints about leave-related issues.