The California Civil Rights Department (CRD) has obtained a $14,425,000 settlement from Microsoft Corporation for allegedly discriminating and retaliating against employees returning from disability, pregnancy, and family caretaking leave.

The settlement resolves a multi-year investigation related to Microsoft’s denial of annual bonuses and/or promotions to workers who took protected leave under California’s Fair Employment and Housing Act, the California Family Rights Act, California’s Pregnancy Disability Leave law, Title VII of the Civil Rights Act of 1964, and the Americans with Disabilities Act.

As part of the settlement, Microsoft will implement proactive steps to prevent future discrimination.

CRD Director Kevin Kish stated: “Whether it’s to look after a newborn child or take care of your own health, workers generally have the right to take time off without worrying about consequences at work.  By allegedly penalizing employees for taking protected forms of leave, Microsoft failed to support workers when they needed to care for themselves or their families. The settlement…will provide direct relief to impacted workers and safeguard against future discrimination at the company.  We applaud Microsoft for coming to the table and agreeing to make the changes necessary to protect workers in California.”

Take-Aways:

Covered employers must correctly implement all applicable leave laws and ensure managers do not consider protected time off when determining compensation and promotions.

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

See also:

• A Cut-Fine Borderline – A Limit to California’s Pregnancy Disability Protections Short Lived? (July 26, 2024)
• Pregnancy Disability Leaves Policy (August 2, 2023)
• Family and Medical Leaves Policy (July 20, 2023)

Cindy Bamforth
September 11, 2024