Microsoft has agreed to a settlement of $14.4 million following allegations made by California's Civil Rights Department.

The department accused the company of engaging in retaliation and discrimination against employees who took parental or disability leave, or who needed time off to care for a family member, Reuters reported.

Microsoft Pays $14.4 Million to Settle California Probe

According to a multiyear investigation by the Civil Rights Department, workers at Microsoft in California face challenges in terms of pay and promotion opportunities when they take leave.

The department filed a complaint in Santa Clara County, stating that employees who took protected leave would receive lower bonuses and unfavorable performance reviews.

As part of the settlement, Microsoft has committed to hiring an independent consultant who will thoroughly review the company's personnel policies.

The consultant will provide recommendations to ensure that managers do not take into account time on protected leave when making decisions regarding annual rewards and promotions.

The company has also committed to providing training for managers and human resources personnel on addressing discrimination. They will also ensure that employees are aware of the process for filing complaints if they feel they have been unfairly denied annual bonuses or other awards.

In addition, the independent consultant will be responsible for submitting annual reports to the Civil Rights Department regarding the reception and handling of discrimination complaints. 

According to the complaint, Microsoft managers did not take into account time on protected leave as active working time when giving annual bonuses, stock awards, or merit increases. However, other forms of leave were not discounted.

According to the department, it was claimed that women and individuals with disabilities were impacted to a greater extent.

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Microsoft's Alleged Employee Discrimination

There have been reports of Microsoft managers making negative comments about employees who took leave, and workers have expressed concerns about facing retaliation after requesting or taking protected leave.

According to Portland Press Herald, the complaint alleges that the actions of Microsoft are ongoing and will continue to cause harm.

Microsoft's headquarters are located in Redmond, Washington, but the company also has a significant presence in California, particularly in the Bay Area.

The majority of the funds from the agreement will be allocated to current and former employees who are eligible for direct relief.

An individual qualifies if they were employed by Microsoft in California for a minimum of three months in 2017 or later and took a leave of absence that was protected by state or federal law.

Last month, a significant settlement was reached by California's Civil Rights Department regarding allegations of sexual harassment, discrimination, and retaliation. The settlement involved Snap, a well-known company based in Santa Monica, known for creating the widely-used social media app Snapchat. 

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