Microsoft will pay $14.4 million to settle a lawsuit brought by the State of California, claiming that Microsoft employees working there between 2017 and 2024 were given lower bonuses and unfavorable performance reviews for taking parental, disability, pregnancy, or caregiving leave.
In addition to punishing workers who took protected leave, the suit alleged that Microsoft’s policies and practices also had a discriminatory adverse impact based on sex and disability. Microsoft denied any wrongdoing and said that the State’s allegations were inaccurate.
The bulk of the settlement—$14.2 million—will cover direct relief for workers and $225,000 will go to the State to reimburse it for enforcement costs. Another part of the consent decree resolving the case mandates that Microsoft managers attend annual training that will, among other things, reiterate that “protected leave cannot count against” workers and address unconscious bias.
What a respectful workplace would do:
A respectful workplace equips its managers and supervisors with the tools and information they need to manage within the law. Smart employers train their supervisory personnel about organization values, policies, and relevant state and federal employment laws to prevent lawsuits. Not-so-smart employers are forced to provide that training as part of a settlement, consent order, conciliation agreement, injunction, or cease and desist order.
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Information here is correct at the time it is posted. Case decisions cited here may be reversed. Please do not rely on this information without consulting an attorney first.
