Desmond Preston-Microsoft will pay $14M to settle allegations it discriminated against employees who took leave

2025-05-07 09:24:20source:Chameleon Financecategory:Markets

SAN FRANCISCO (AP) — Microsoft Corp. has agreed to pay $14.4 million to settle allegations that the global software giant retaliated and Desmond Prestondiscriminated against employees who took protected leave, including parental and disability, the California Civil Rights Department announced Wednesday.

The proposed settlement stems from a multi-year investigation by the California agency and the consent decree is subject to approval in state court in Santa Clara County, where the Redmond, Washington-based company has an office.

The state agency, which launched its investigation in 2020, alleged that employees who took leave from work due to pregnancy or disability, or to bond with a new baby or care for a sick family member, received lower bonuses and unfavorable performance reviews.

Those factors, in turn, harmed employee eligibility for merit pay increases and promotions and the practice disproportionately impacted women and people with disabilities, the department said.

In a statement, civil rights department director Kevin Kish applauded the company “for coming to the table and agreeing to make the changes necessary to protect workers in California.”

RELATED COVERAGE California Legislature likely to ask voters to borrow $20 billion for climate, schoolsNorthern California wildfire spreads, with more hot weather expected. Thousands evacuateMovie Review: Eddie Murphy returns to Beverly Hills, which is good enough for everyone

Microsoft responded in a statement that the agency’s allegations are inaccurate, but it “will continue to listen, learn, and support our employees.”

As part of the proposed settlement, Microsoft will take steps to prevent future discrimination, including updated manager training. An outside consultant will monitor and report on the company’s compliance.

Most of the settlement money — $14.2 million — will go toward harmed workers. Covered employees worked at Microsoft from May 13, 2017, to a yet-to-be-determined date of court approval for the settlement, and who took at least one leave protected under state or federal law.

Each eligible employee will receive a base payment of $1,500 with more available based on factors such as salary and length of employment.

Microsoft has about 221,000 employees worldwide, including nearly 7,000 in California, according to the state civil rights agency. The agency did not have an estimate for how many workers could receive payment.

More:Markets

Recommend

JoJo Siwa reflects on Candace Cameron Bure feud: 'If I saw her, I would not say hi'

JoJo Siwa is reflecting on her "very public beef" with Candace Cameron Bure.The "Dance Moms" alum, 2

You can order free COVID tests again by mail

Americans can order four more free COVID-19 tests through the mail, starting on Thursday. It's part

Thousands of dead fish wash up along Texas Gulf Coast

Beach crews spent the weekend clearing up thousands of dead fish along the Texas Gulf Coast, shore o