By Sabela Ojea


Microsoft has agreed to pay $14.4 million to resolve allegations of penalizing employees for taking protected forms of leave with the California Civil Rights Department.

The CRD on Wednesday said that Microsoft had allegedly retaliated and discriminated against employees over taking parental, disability, pregnancy, and family care leaves, which are prohibited in state and federal law from employer interference.

CRD alleged that employees who used protected leave received lower bonuses and unfavorable performance reviews, which affected their eligibility for merit increases, stock awards, and promotions. Those employees might be eligible to receive compensation if the court approves the settlement.

As part of the settlement, which resolves a multi-year investigation into the tech company, Microsoft has committed to take a number of steps to prevent future discrimination and provide monetary relief to employees who used protected leave at the company in California between 2017 and 2024.

Overall, Microsoft will pay $14.2 million to cover direct relief for workers and $225,000 in costs associated with the department's enforcement efforts. The company will also retain an independent consultant to make recommendations on personnel policies and practices and report annually on compliance with the agreement.

"The settlement announced today will provide direct relief to impacted workers and safeguard against future discrimination at the company," CRD director Kevin Kish said. "We applaud Microsoft for coming to the table and agreeing to make the changes necessary to protect workers in California."


Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix


(END) Dow Jones Newswires

07-03-24 1341ET