Microsoft has agreed to a $14.2 million settlement to resolve allegations of discriminatory practices against several employees who took protected leave but were reportedly punished for it.
The California Division of Civil Rights (CRD) is investigating whether Microsoft has violated the California Fair Employment and Housing Act and the Americans with Disabilities Act since 2020.
Ultimately, it turned out that Microsoft employees who took protected leave, such as caregiver, disability, and maternity leave, received lower bonuses and unfavorable performance reviews.
Microsoft guilty of discriminatory practices
Additionally, the study found that Microsoft’s negative employee reviews affected employees’ eligibility for salary increases, stock options and promotions.
According to the Department of Civil Rights, Redmond also failed to prevent discrimination, which affected the career opportunities of women, people with disabilities and other employees.
About 6,700 of the company’s 221,000 employees, or 3% of Microsoft’s total workforce, are based in California.
CRD Executive Director Kevin Kish commented: “The settlement announced today will provide immediate relief to affected employees and protect against future discrimination at the company. We commend Microsoft for coming to the table and agreeing to make the necessary changes to protect California workers.”
If the court agrees, Microsoft will pay a settlement of $14.2 million to cover direct compensation for workers, and an additional $225,000 in costs related to the CRD enforcement action.
In a rackThe CRD noted: “Individuals who took protected leave and worked at Microsoft in California between May 2017 and the date the court signed the settlement agreement may be eligible for compensation.”
TechRadar Pro Microsoft has asked for comment on the matter, but we have not yet received a response.
