Microsoft reaches settlement in California about claims it punished workforce for taking secured time off

Microsoft reaches settlement in California about claims it punished workforce for taking secured time off


A brand sits illuminated at the Microsoft booth in the Cellular Earth Congress 2024 in Barcelona on Feb. 26, 2024.

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Microsoft is shelling out $14.4 million to settle a circumstance in California around allegations that the corporation retaliated in opposition to staff who experienced taken lawfully shielded time off.

California’s Civil Legal rights Section announced the proposed settlement on Wednesday. Right after approval by a point out choose, almost all of the revenue will go to California employees who took parental depart, loved ones treatment-having go away or incapacity go away from 2017 to the existing, and who make your mind up to take part in the settlement.

“Because Microsoft personnel who use or will use secured go away are disproportionately gals and persons with disabilities, Microsoft’s challenged procedures and tactics also have a discriminatory adverse effects centered on sexual intercourse and disability that Microsoft can’t justify based mostly on small business necessity,” the agency mentioned.

According to the criticism, Microsoft isn’t going to do enough to prevent administrators from using shielded leave into thought when examining an employee’s’ “affect,” a component that’s concerned in the calculation of yearly bonuses, promotions, inventory awards and benefit improves.

Microsoft, which is based mostly in Redmond, Washington, employs close to 6,700 folks in California out of its overall workforce of 221,000, the criticism states.

Microsoft did not instantly supply a comment.

Beneath CEO Satya Nadella, Microsoft has sought to diversify its higher ranks, whilst also turning out to be much more responsive to concerns associated to harassment and discrimination.

The percentage of ladies at the husband or wife, executive, director and manager concentrations has greater above the years. Within core Microsoft, women represented 31.2% of the workforce in 2023, up from 27.6% in 2019, in accordance to the company’s most current diversity report.

In 2022, next a shareholder vote, Microsoft stated it would revise its sexual harassment and gender discrimination principles just after a report from an exterior group found difficulties in the firm’s handling of complaints.

Staff members have described feeling apprehensive about retaliation immediately after inquiring for protected leave, according to the California complaint. The proposed settlement suggests Microsoft disputes the agency’s statements.

As element of the settlement, Microsoft will give teaching to immediate and next-amount administrators of staff members members in California and to human-means employees who offer with their bonuses and merit boosts. Managers will also be instructed not to contemplate time off for secured depart when producing “effects” decisions. A guide, APTMetrics, will be responsible for checking compliance.

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