California and federal labor laws are designed to protect employees from unlawful discrimination. California’s Fair Employment and Housing Act  (FEHA), signed into law in 1980 by then-Governor Jerry Brown, is the principal anti-discrimination law in California today.

The FEHA also established a policing agency, the Civil Rights Department  (CRD). The department holds the power to investigate, mediate and prosecute discrimination complaints. Today, it is the largest civil rights agency among all fifty states.

California was not always known for its vigorous anti-discrimination efforts.  In 1850, the new state legislature rescinded Native American claims on land and other rights of citizenship. African Americans were banned from homesteading public land, sending their children to public schools and using public transportation. In the 1920s and 30s, the sale or occupation of real property was restricted on the basis of race, ethnicity, religion and social class.

Anti-discrimination legislation was introduced in California in the mid-1940s and early 1950s, but failed to pass the state legislature. In 1959, however, the Fair Employment Practices Act and the Unruh Civil Rights Acts (named for its author, Jesse Unruh) were passed, barring discrimination in the workplace and declaring all Californians “free and equal.”

The Fair Employment and Housing Act was amended in 1992 to reflect federal anti-discrimination laws. The amendment permitted actual damages, punitive damages and reasonable attorneys’ fees to be awarded to the winners of discrimination lawsuits (except for lawsuits involving the State of California).

In 1993, the California Family Rights Act became law, granting “secure leave” rights to employees for the birth of a child, during placement of a child in the employee’s home for adoption or foster care, for the serious health condition of the employee’s child, parent or spouse, and for the employee’s own serious health condition. The CRD was given responsibility for enforcing this.

In 2024, a CRD discrimination lawsuit against Microsoft Corporation settled for $14.425 million, the largest on record. The case alleged violations of the California Family Rights Act, (CFRA), California’s Pregnancy Disability Leave law,  Title VII of the Civil Rights Act of 1964, and the Americans with Disabilities Act (ADA).

According to the CRD, Microsoft systematically disadvantaged employees who exercised their right to take protected leave. The department asserted that these employees received lower bonuses and unfavorable performance evaluations, negatively impacting their opportunities for merit-based pay increases, and career advancement. The lawsuit further alleged Microsoft failed to take adequate steps to prevent workplace discrimination, which affected the professional growth of women, individuals with disabilities, and other minority groups within the company.

Take-Away:

California is widely recognized as one of the most employee-friendly states, offering comprehensive workplace protections. Employers are strongly encouraged to stay informed about evolving anti-discrimination laws, implementing compliant workplace policies, and providing regular training on discrimination awareness and prevention.

For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

See also:

• Majority Discrimination – US Supreme Court Levels the Playing Field (June 13, 2025)
• Digital Diligence: AI Hiring Tools Must Avoid Discrimination (May 15, 2025)
• Older Workers are People, Too: EEOC Settles Age Discrimination Claims Against Theatre Chain (May 9, 2025)
• Pregnancy Disability Leaves Policy (August 2, 2023)

Tim Bowles
August 1, 2025