A logo is illuminated at the Microsoft booth at Mobile World Congress 2024 in Barcelona on February 26, 2024.
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Microsoft is paying $14.4 million to settle a California case over allegations the company retaliated against workers who had taken legally protected time off.
The California Department of Civil Rights announced the proposed arrangement on Wednesday. After approval by a state judge, nearly all of the money will go to California workers who took parental, family care or disability leave between 2017 and today who decide to participate in the settlement.
“Because Microsoft employees who use or will use Protected License are disproportionately women and people with disabilities, Microsoft’s challenged policies and practices also discriminate against gender and disability that Microsoft cannot justify on the basis of business necessity.” , the state agency said.
According to the complaint, Microsoft is not doing enough to prevent managers from considering protected leave when evaluating an employee’s “impact,” a factor involved in calculating annual bonuses, promotions, stock awards and merit increases. .
Microsoft, which is based in Redmond, Washington, employs about 6,700 people in California out of a total workforce of 221,000, according to the complaint.
Under CEO Satya Nadella, Microsoft has sought to diversify its senior ranks while becoming more responsive to issues related to harassment and discrimination.
The percentage of women at partner, executive, manager and director levels has increased over the years. At Microsoft’s core, women will make up 31.2% of the workforce in 2023, up from 27.6% in 2019, according to the company’s latest figures diversity report.
In 2022, after a shareholder vote, Microsoft said it would review its rules on sexual harassment and gender discrimination after a report from an outside group found problems with the company’s handling of complaints.
According to the California complaint, the workers said they were concerned about retaliation after requesting protected leave. The proposed settlement said Microsoft disputes the service’s claims.
“Microsoft is committed to an environment that enables our employees to take time off when needed and provides them with the flexibility and support they need to thrive professionally and personally,” a company spokesperson told CNBC in an email. “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 provide training to staff members’ direct and second-level managers in California and to human resources officials who deal with their bonuses and raises. Managers will also be instructed not to take sheltered leave leave times into account when making ‘impact’ decisions. A consultant, APTMetrics, will be responsible for monitoring compliance.