Microsoft Settles $14.4 Million Lawsuit Over Employee Discrimination Claims

Microsoft Corp. has agreed to a $14.4 million settlement with the California Civil Rights Department over allegations of retaliation and discrimination against employees who took protected leave. The settlement includes updated manager training and monitoring by an external consultant. Most of the settlement funds will compensate affected employees.

Microsoft Corp. has consented to a $14.4 million settlement to address accusations of retaliating and discriminating against employees taking protected leave, announced the California Civil Rights Department on Wednesday. The Redmond-based software giant's settlement is pending court approval in Santa Clara County.

The state's probe, initiated in 2020, found that employees on parental or disability leave were subjected to reduced bonuses and biased performance reviews, impairing their prospects for raises and promotions, particularly affecting women and disabled staff. Kevin Kish, director of the civil rights department, commended Microsoft's willingness to implement necessary changes to safeguard California workers.

While Microsoft disputes the allegations, it has committed to listening, learning, and supporting its workforce. Measures include enhancing manager training and compliance oversight by an external consultant. The bulk of the settlement fund will be allocated to the impacted employees, who worked at Microsoft from May 13, 2017, onwards. Eligible employees will receive a base payment of $1,500, with additional compensation depending on salary and tenure.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)