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Microsoft agrees to $14 million California pay discrimination settlement

Microsoft is set to pay $14.4 million to resolve a case alleging retaliatory and discriminatory practices towards California employees who took protected depart, corresponding to household care, parental, incapacity and being pregnant depart. The Civil Rights Division of California (CRD) launched an investigation into Microsoft in 2020, wanting into whether or not the tech large violated legal guidelines corresponding to California’s Honest Employment and Housing Act and the Americans with Disabilities Act. The proposed settlement is topic to courtroom approval.

CRD claimed that employees who took protected depart “obtained decrease bonuses and unfavorable efficiency critiques that, in flip, harmed their eligibility for advantage will increase, inventory awards, and promotions.” The California Division additionally alleged that Microsoft “did not take ample motion to forestall discrimination from occurring, altering the profession trajectory of girls, individuals with disabilities, and different staff who labored on the firm, in the end leaving them behind.”

Microsoft’s payment will go towards employees impacted from Might 2017 till the date of the courtroom’s approval. The corporate should additionally retain an unbiased guide for coverage and follow suggestions, making certain that managers do not use protected depart as a determinant when deciding rewards and promotions — managers and HR might want to bear particular discrimination coaching. The unbiased guide will even work with Microsoft to verify that staff have an easy methodology to boost complaints in the event that they really feel taking protected depart has influenced their standing within the firm. Moreover, the unbiased guide should present an annual compliance report reflecting Microsoft’s following of the settlement.

“The settlement introduced at present will present direct aid to impacted employees and safeguard towards future discrimination on the firm,” Kevin Kirsh, CRD’s director, acknowledged. “We applaud Microsoft for coming to the desk and agreeing to make the adjustments essential to guard employees in California.”

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