Microsoft to Pay $14.4 Million to Settle California Retaliation Lawsuit Over Protected Leave
Microsoft has agreed to pay $14.4 million to settle a lawsuit alleging the company retaliated against employees who took legally protected time off, such as parental leave, family care-taking leave, and disability leave. The settlement, announced by California’s Civil Rights Department, will see nearly all of the funds dispersed to California workers who took protected leave between 2017 and the present and choose to participate.
Key Takeaways:
- Microsoft allegedly penalized employees for taking protected leave. The lawsuit accused Microsoft of failing to prevent managers from considering protected leave as a factor in performance evaluations, which impacted bonus calculations, promotions, and merit increases. This practice, the agency claimed, disproportionately affected women and people with disabilities.
- Microsoft denies the allegations but will provide training and monitoring. While Microsoft disputes the Civil Rights Department’s claims, the settlement includes a significant training program for managers and human resources personnel on how to properly handle leave requests and avoid bias in performance evaluations. A third-party consultant will monitor the company’s compliance.
- The settlement reflects a broader issue facing large corporations. The lawsuit highlights the persistent challenges of ensuring fair treatment for employees who take protected leave. It also underscores the importance of addressing workplace policies that may unintentionally discriminate against certain groups.
- Microsoft has made efforts to improve diversity and inclusivity in recent years. Despite the lawsuit, Microsoft has made strides in increasing women’s representation in leadership positions and has actively addressed issues related to harassment and discrimination. However, this settlement demonstrates that more work remains to be done to foster a truly inclusive workplace.
The lawsuit, filed by the California Civil Rights Department, alleged that Microsoft’s internal policies and practices created a hostile environment for employees who took legally protected leave. The agency specifically pointed to Microsoft’s evaluation system, which considers employee "impact" as a significant factor in determining bonuses, promotions, stock awards, and merit increases. The complaint argued that managers improperly factored protected leave into this "impact" assessment, effectively penalizing employees who exercised their legal rights.
"Because Microsoft workers who use or will use protected leave are disproportionately women and people with disabilities, Microsoft’s challenged policies and practices also have a discriminatory adverse impact based on sex and disability that Microsoft cannot justify based on business necessity," the agency stated.
The settlement requires Microsoft to implement a series of measures to prevent future discriminatory practices. These include:
- Mandatory training for managers and HR personnel: The training will focus on ensuring compliance with leave laws and preventing discrimination in performance evaluations.
- Prohibiting consideration of protected leave in "impact" decisions: Managers will be required to exclude protected leave from their evaluation of an employee’s "impact," eliminating the perceived bias against workers who took time off.
- Third-party monitoring: APTMetrics, an independent consultant, will monitor Microsoft’s progress in implementing the agreed-upon changes and ensuring compliance with California’s employment laws.
Beyond the settlement, the case raises broader concerns about the treatment of employees who take protected leave. According to the lawsuit, employees reported feeling pressured to return to work quickly after seeking leave, fearing potential retaliation from their supervisors. This fear, coupled with discriminatory practices, can create a hostile and unfair work environment for individuals who need to exercise their legal right to take protected leave.
As a major tech company, Microsoft’s commitment to diversity and inclusivity is under scrutiny. While the company has made significant strides in recent years to improve the representation of women and underrepresented minorities in its workforce, the lawsuit underscores the ongoing challenges in creating a genuinely inclusive workplace. The settlement serves as a reminder of the importance of establishing clear policies and effective training to ensure fair treatment for all employees, regardless of their need for protected leave.
The settlement, while acknowledging the concerns raised by the lawsuit, does not necessarily address the broader systemic issues within companies like Microsoft. It remains to be seen whether the training and monitoring measures will be effective in preventing future instances of discrimination and retaliation against employees seeking protected leave. The case also highlights the need for continued vigilance in promoting a work culture that fosters a sense of safety and security for all employees.
