According to a California agency, Microsoft Corp (MSFT.O), opens new tab has agreed to pay $14 million to resolve allegations that it unlawfully punished employees for taking medical or family leave. The agency announced this on Wednesday.
In state court documents, the California Civil Rights Department charged that the tech giant was depriving its California-based employees who had taken parental, disability, maternity, and family-care leave since 2017 of stock awards, promotions, and increases as retaliation.
The agency stated that such employees, who were predominately women and persons with disabilities, had lower performance evaluation ratings, which in turn affected their compensation and possibilities for advancement as well as their career path.
A state court must accept the settlement in order to put an end to the Civil Rights Department’s multiyear inquiry.
Microsoft’s settlement deal contained a denial of guilt. A firm representative expressed their disagreement with the agency’s accusations in a statement.
A representative for Microsoft stated, “We are dedicated to creating an environment where our employees feel empowered to take time off when needed and receive the flexibility and support they need to succeed both personally and professionally.”
A number of sizable settlements, mostly involving sex-discrimination lawsuits, have been announced by the state’s Civil Rights Department in recent years. These comprise a $100 million agreement with Riot Games, the manufacturer of video games, in 2021, a $54 million settlement with Activision Blizzard in 2018, and a $15 million settlement with Snap, the parent company of Snapchat (SNAP.N), opens new tab, taking effect from last month.
The commission charged Microsoft with violating workers’ rights to take leave and discriminating against them based on their gender and handicap.
The number of workers who may profit from the settlement remained unclear. Microsoft, headquartered in Redmond, Washington, employs around 6,700 people in California, according to court documents.
