The California Civil Rights Department (CRD) has reached a $14,425,000 proposed settlement with the Microsoft Corporation to resolve allegations of retaliation and discrimination against workers based on their use of protected leave, including parental, disability, pregnancy, and family care taking leave.  

Microsoft is alleged to have violated state and federal laws protecting an employee’s use of protected leave under the following statutes: 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.  The complaint filed by CRD alleges that women and people with disabilities are overrepresented among the group of workers at Microsoft who use these forms of leave and that workers who used protected leave faced unlawful retaliation and discrimination in compensation and promotion opportunities because of their use of the leave.  

For example, CRD alleged that employees who used protected leave received lower bonuses and unfavorable performance reviews that, in turn, harmed their eligibility for merit increases, stock awards, and promotions. In addition, CRD alleged that Microsoft failed to take sufficient action to prevent discrimination from occurring, altering the career trajectory of women, people with disabilities, and other employees who worked at the company, ultimately leaving them behind. 

If approved by the court, the settlement will require Microsoft to: 

• Pay $14,200,000 to cover direct relief for workers and $225,000 in costs associated with the department’s enforcement efforts. 

• Retain an independent consultant to make recommendations on Microsoft’s personnel policies and practices to ensure managers do not consider time on protected leave in determining annual rewards and promotions. 

• Work with the independent consultant to also ensure workers know how to raise complaints in instances where they believe that annual rewards and promotion decisions reflect discrimination or retaliation for the use of protected leave. 

• Report annually, via the independent consultant, on compliance with the settlement, including with respect to how complaints of discrimination are received and processed. 

• Ensure managers and human resources personnel complete training concerning prohibitions on discrimination based on the use of protected leave. 

Employers can lower their risk of claims associated with an employee’s use of protected leave by: 

• Reviewing and updating internal policies to ensure compliance with state and federal leave laws. 

• Implementing a regular training schedule (annual or bi-annual) for all supervisory personnel on the proper handling of leave requests to ensure compliance and avoid discriminatory practices and retaliatory conduct. 

• Maintaining accurate and detailed records of employee leave requests, approvals, and denials. 

• Establishing a leave tracking system to assist Human Resources/Benefits personnel in complying with appropriate notice provisions, certification requirements and leave limits.  

• Providing regular updates to employees about their leave entitlements and any changes in the law. 

• Ensuring open communication with employees to address any concerns or questions regarding leave usage. 

• Initiating a return-to-work system to offer support for employees returning from leave and facilitate a smooth return to work transition.