Microsoft agrees to $14 million California pay discrimination settlement

Microsoft is set to pay $14.4 million to resolve a case alleging retaliatory and discriminatory practices in opposition to California staff who took protected depart, reminiscent of household care, parental, incapacity and being pregnant depart. The Civil Rights Division of California (CRD) launched an investigation into Microsoft in 2020, trying into whether or not the tech big violated legal guidelines reminiscent of California’s Truthful Employment and Housing Act and the Americans with Disabilities Act. The proposed settlement is topic to courtroom approval.

CRD claimed that staff who took protected depart “obtained decrease bonuses and unfavorable efficiency evaluations that, in flip, harmed their eligibility for advantage will increase, inventory awards, and promotions.” The California Division additionally alleged that Microsoft “didn’t take ample motion to stop discrimination from occurring, altering the profession trajectory of girls, individuals with disabilities, and different workers who labored on the firm, in the end leaving them behind.”

Microsoft’s payment will go towards staff impacted from Could 2017 till the date of the courtroom’s approval. The corporate should additionally retain an unbiased advisor for coverage and follow suggestions, guaranteeing that managers do not use protected depart as a determinant when deciding rewards and promotions — managers and HR might want to endure particular discrimination coaching. The unbiased advisor will even work with Microsoft to substantiate that workers have an easy methodology to boost complaints in the event that they really feel taking protected depart has influenced their standing within the firm. Moreover, the unbiased advisor should present an annual compliance report reflecting Microsoft’s following of the settlement.

“The settlement introduced as we speak will present direct aid to impacted staff and safeguard in opposition to future discrimination on the firm,” Kevin Kirsh, CRD’s director, said. “We applaud Microsoft for coming to the desk and agreeing to make the adjustments crucial to guard staff in California.”