California and federal labor laws are designed to protect employees from unlawful discrimination. California’s 1980 Fair Employment and Housing Act  (FEHA) is the state’s principal anti-discrimination law today.

The FEHA also established a policing agency, Department of Fair Employment and Housing, now the Civil Rights Department  (CRD). It holds the power to investigate, mediate and prosecute discrimination complaints. It is the largest such 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  In 1850, the new state legislature rescinded Native American claims on land and other rights of citizenship. The state also banned African Americans 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 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 enacted, 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 law, permitting actual damages, punitive damages and reasonable attorneys’ fees to be awarded to the winners of discrimination lawsuits against offending private employers. 

In 1993, the California Family Rights Act (CFRA) became law, granting “secure leave” rights to employees for the birth of a child, during placement of a child in an employee’s home for adoption or foster care, for the serious health condition of an employee’s child, parent or spouse, and for an employee’s own serious health condition. 

In 2024, a CRD discrimination lawsuit against Microsoft settled for $14.425 million, the largest on record, over alleged violations of 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 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. 

California is widely recognized as one of the most employee-protective states. 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.

November 23, 2025