Microsoft Corp has agreed to pay $14 million to settle allegations from a California agency that the company unlawfully penalized employees who took medical or family-care leave, as announced by the California Civil Rights Department on Wednesday.
The Civil Rights Department's filings in state court accused the tech giant of retaliating against its California-based employees who utilized parental, disability, pregnancy, and family-care leave since 2017.
The department claimed that these workers, who were predominantly women and people with disabilities, were denied raises, promotions, and stock awards.
Additionally, they received lower performance-review scores, which negatively impacted their pay, career advancement opportunities, and overall career trajectory.
The settlement, which is pending approval by a state judge, aims to resolve a multiyear investigation by the Civil Rights Department. Despite agreeing to the settlement, Microsoft denied any wrongdoing.
A company spokesperson stated, "Microsoft is committed to an environment that empowers our employees to take leave when needed and provides the flexibility and support necessary for them to thrive professionally and personally." The spokesperson emphasized that the company disagreed with the agency's allegations.