Microsoft has reached a settlement in California, agreeing to pay $14.4 million to settle a case involving allegations that the company retaliated against employees who had taken legally protected time off. The California Civil Rights Department has announced the proposed settlement, which will see almost all of the money going to California workers who have taken parental leave, family care-taking leave, or disability leave since 2017.
According to the agency, Microsoft’s policies and practices surrounding protected leave have a discriminatory adverse impact based on sex and disability. The complaint states that Microsoft does not adequately prevent managers from considering protected leave when evaluating an employee’s “impact,” which factors into annual bonuses, promotions, stock awards, and merit increases.
Under the leadership of CEO Satya Nadella, Microsoft has made efforts to diversify its upper ranks and address issues related to harassment and discrimination. The company has seen an increase in the percentage of women at various levels within the organization. However, despite these efforts, employees in California have reported concerns about retaliation after taking protected leave.
Microsoft has stated that it is committed to providing an environment that empowers employees to take leave when needed and supports their professional and personal growth. A company spokesperson has emphasized that while they believe the agency’s allegations are inaccurate, they are willing to listen, learn, and support their employees.
As part of the settlement, Microsoft will provide training to managers in California and human resources employees on handling bonuses and merit increases. Managers will be instructed not to take protected leave into account when making decisions about employee “impact.” A consultant will also be responsible for monitoring compliance with the settlement terms.
Microsoft’s settlement in California over allegations of retaliation highlights the importance of ensuring that employees are not penalized for taking legally protected time off. The company’s commitment to providing a supportive environment for its employees is commendable, but it is crucial that they continue to address issues of discrimination and retaliation in the workplace. By implementing training programs and monitoring compliance with settlement terms, Microsoft can work towards creating a more inclusive and equitable workplace for all employees.
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