Microsoft to pay $14.4M to resolve leave discrimination claims in California (NASDAQ:MSFT)

The California Civil Rights Department has reached a $14.4M settlement with Microsoft (NASDAQ:MSFT) to resolve allegations of discrimination in compensation related to the use of protected leave under state and federal civil rights laws, the agency said Wednesday.

In a complaint filed by the agency against Microsoft (MSFT), the department alleged that women and people with disabilities are overrepresented among the group of workers who use these forms of leave and that workers who used protected leave “faced unlawful retaliation and discrimination in compensation and promotion opportunities because of their use of the leave.”

In addition, “employees who used protected leave received lower bonuses and unfavorable performance reviews that, in turn, harmed their eligibility for merit increases, stock awards, and promotions.”

As part of the proposed settlement, Microsoft (MSFT) has committed to taking a range of proactive steps to prevent future discrimination and provide monetary relief to employees who used protected leave at the company in California between 2017 and 2024.

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

The settlement, which must be approved by a state judge, would resolve a multiyear investigation by the Civil Rights Department.