Microsoft agrees to review leave policies after California settlement

Microsoft has agreed to pay a $14 million settlement after the California Civil Rights Department said the firm retaliated against employees who took medical or family leave by denying them raises, promotions, or stock awards. While Microsoft has denied wrongdoing, it has agreed to settle and will hire an independent consultant to review its leave policies and provide training to managers and HR personnel.

Those being allegedly discriminated against took leave since 2017 for issues related to parental responsibilities, disability, pregnancy, and family care. This particularly affected women and people with disabilities and they ended up getting lower performance-review scores which suppressed their pay and chances for promotion which hurt their careers.

Denying the allegations brought against it, a spokesperson for Microsoft 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."

Kevin Kish from the Civil Rights Department said that Microsoft had failed to properly care for employees who needed to take time off. He said that the settlement would provide "direct relief" to affected workers and help to safeguard against future discrimination at the company.

It's not clear exactly how many employees have been affected by this case but Reuters points out that Microsoft has around 6,700 employees in California.

Microsoft is just the latest target of the Civil Rights Department which has been going after companies based on sex-discrimination incidents. There was a $100 million deal with Riot Games in 2021, a $54 million settlement with Activision Blizzard in 2023, and last month it agreed to a $15 million settlement with Snap, the parent company of Snapchat.

Hopefully, Microsoft's decision to hire an independent consultant will lead to changes that make the company a better place to work, especially for women and disabled people.

Source: Reuters - Image via Depositphotos.com