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Microsoft To Settle California Discrimination Lawsuit For $14.4 Million
https://www.whatjobs.com/news/microsoft-news/microsoft-to-settle-california-discrimination-lawsuit-for-14-4-million
By Nithya Bose in Business News, posted July 4, 2024
Microsoft has agreed to pay $14.4 million to resolve allegations in California it retaliated against employees who took legally protected time off.
California’s Civil Rights Department announced the proposed settlement, which will be finalized pending approval by a state judge.
Most settlement funds will be distributed to California employees who took parental, family caretaking, or disability leave from 2017 to the present and choose to participate in the settlement.
The state agency said: “Because Microsoft workers who use or will use protected leave are disproportionately women and people with disabilities, Microsoft’s challenged policies and practices also have a discriminatory adverse impact based on sex and disability that Microsoft cannot justify based on business necessity.”
The complaint claims Microsoft did not adequately prevent managers from factoring in protected leave when evaluating an employee’s “impact.”
This affects annual bonuses, promotions, stock awards, and merit increases.
Microsoft, headquartered in Redmond, Washington, employs roughly 6,700 people in California out of 221,000.
Under CEO Satya Nadella, Microsoft has worked to diversify its leadership and address issues related to harassment and discrimination.
According to the company's diversity report, the percentage of women in partner, executive, director, and manager roles has increased.
In 2023, women made up 31.2 percent of the core workforce, up from 27.6 percent in 2019.
Following a 2022 shareholder vote, Microsoft committed to revising its sexual harassment and gender discrimination policies after an external report identified issues in handling complaints.
“Microsoft is 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"
Despite these efforts, the California complaint revealed that employees were concerned about retaliation when requesting protected leave.
Microsoft disputes these claims but has agreed to the settlement to move forward.
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A Microsoft spokesperson said: “Microsoft is 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.
“While we believe the agency’s allegations are inaccurate, we will continue to listen, learn, and support our employees.”
As part of the settlement, Microsoft will implement training for direct and second-level managers in California, as well as human resources employees who manage bonuses and merit increases.
Managers will be explicitly instructed not to consider protected leave when evaluating employee “impact.”
Compliance with these measures will be monitored by the consultant APTMetrics.
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