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, similar to household care, parental, incapacity and being pregnant depart. The Civil Rights Division of California (CRD) launched an investigation into Microsoft in 2020, wanting into whether or not the tech big violated legal guidelines similar to California’s Honest 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 opinions that, in flip, harmed their eligibility for benefit 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, folks with disabilities, and different staff who labored on the firm, in the end leaving them behind.”

Microsoft’s payment will go towards staff impacted from Might 2017 till the date of the courtroom’s approval. The corporate should additionally retain an unbiased marketing consultant 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 bear particular discrimination coaching. The unbiased marketing consultant can even work with Microsoft to verify that staff have an easy technique to lift complaints in the event that they really feel taking protected depart has influenced their standing within the firm. Moreover, the unbiased marketing consultant should present an annual compliance report reflecting Microsoft’s following of the settlement.

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