Tech giant Microsoft has reached a settlement of $14 million with the California Civil Rights Department (CRD) to resolve allegations of unfair treatment towards employees who took protected leave. The CRD claimed that Microsoft retaliated against California-based workers who utilized parental, disability, pregnancy, and family care leave between 2017 and now. This retaliation reportedly denied these employees raises, promotions, and stock options.
The CRD’s director, Kevin Kish, expressed disappointment in Microsoft’s prior stance on leave, stating that the company failed to adequately support workers when they needed to prioritize their health or families. Kish emphasized that the settlement aims to deliver direct financial compensation to affected employees while safeguarding against future discriminatory practices within Microsoft.
The settlement consists of a $14.4 million payout, with most funds directed towards Californian Microsoft employees who took the aforementioned protected leaves during the specified timeframe and chose to participate in the settlement. This incident sheds light on a potential gender bias within the company, considering that women comprise over 30% of Microsoft’s workforce, according to their latest diversity report. This issue is further amplified by a 2022 shareholder vote that compelled Microsoft to revise its policies on sexual harassment and gender discrimination following an external report uncovering the problematic handling of such complaints.
The CRD’s investigation revealed that Microsoft employees feared retaliation after requesting protected leave. While Microsoft has refuted the CRD’s claims, the settlement signifies a step towards rectifying the situation. Beyond the financial compensation, the agreement mandates Microsoft to hire an independent consultant. This consultant will ensure that the company’s policies don’t discriminate against employees who take leave and that a proper system exists for employees to voice their concerns. Additionally, Microsoft must train managers and HR personnel to address these issues and prevent future occurrences.
This settlement reminds us of the importance of upholding employee rights, particularly regarding protected leave. It highlights the need for companies to foster an environment where employees feel comfortable taking necessary leave without fearing repercussions on their career progression. Implementing the independent consultant’s recommendations and the mandated training will be crucial in ensuring Microsoft adheres to these principles and fosters a more equitable workplace culture.
