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Microsoft reached a $14.4 million settlement with California’s Civil Rights Department to resolve claims that it discriminated and retaliated against women and disabled workers when they took protective leave.
The department said that, during its four-year investigation, it found that Microsoft gave lower bonuses and unfavorable performance reviews to workers who used protected leave, reducing their chances of getting promotions and stock awards. Protected leave gives workers rights to time off for pregnancy, disability, family care, and parental reasons without being retaliated against.
A Microsoft spokesperson told Quartz that it believes the agency’s allegations are inaccurate and that it’s “committed to an environment that empowers our employees to take leave when needed and provides the flexibility and support necessary for them to thrive professionally and personally.”
Civil Rights Department Director Kevin Kish said in a statement Wednesday,“By allegedly penalizing employees for taking protected forms of leave, Microsoft failed to support workers when they needed to care for themselves or their families.”
“The settlement announced today will provide direct relief to impacted workers and safeguard against future discrimination at the company,” he added.
The overwhelming majority of the settlement — $14.2 million — will be paid as direct relief to Microsoft workers in California who were impacted by the alleged issue between 2017 and 2024. Microsoft also committed to taking “range of proactive steps to prevent future discrimination,” CRD said. That includes more training for managers over workers’ rights to protected leave and hiring an independent consultant every year to assess whether it’s complying with the terms of the settlement, among others.
“We applaud Microsoft for coming to the table and agreeing to make the changes necessary to protect workers in California,” said Kish.
Quotable
As I think about living our mission, top of mind for me heading into 2016 is how we must make Microsoft products accessible to the more than 1 billion people globally of all abilities. This is a shared goal. Universal design is central to how we realize our mission and will make all our products better. Along with our Senior Leadership Team, I will continue to devote my time and passion to this priority.
— Microsoft CEO Satya Nadella in a 2015 statement about the company’s commitment to serving customers with disabilities
Under CEO Satya Nadella’s leadership since 2014, Microsoft has become more focused on DEI. The company publishes an annual report of its headway on such initiatives.
By the numbers
$14.2 million: Direct relief paid to workers in California who took protected leave between 2017 and 2024 and were part of the suit.
6,700: Number of Microsoft workers in California.
29.1%: Percentage of Microsoft executives who are women, according to its annual DEI report.