Nandini Roy Choudhury, writer
Brief news
Microsoft has agreed to pay $14.4 million to resolve a California lawsuit alleging discrimination against workers who took legally permitted leave. The proposed settlement will be awarded to California workers who took parental leave, family care leave, or disability leave between 2017 and the present. The state agency stated that Microsoft’s challenged policies and practices have a discriminatory adverse impact based on sex and disability, which Microsoft cannot justify based on business necessity. The lawsuit claims that Microsoft does not go far enough in discouraging managers from taking protected leave into account when evaluating an employee’s “impact,” which is a component taken into account when determining yearly bonuses, promotions, stock awards, and merit raises. Microsoft will amend its policies regarding sexual harassment and gender discrimination in 2022.
Illustrated news
Microsoft has agreed to pay $14.4 million to resolve a lawsuit filed in California alleging that the business discriminated against workers who had taken time off that was legally permitted.
The proposed settlement was made public on Wednesday by the California Department of Civil Rights. Nearly majority of the money will be awarded to California workers who took parental leave, family care leave, or disability leave between 2017 and the present and who choose to take part in the settlement, after approval by a state judge.
The state agency stated, “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 because Microsoft workers who use or will use protected leave are disproportionately women and people with disabilities.”
The complaint claims that Microsoft does not go far enough in discouraging managers from taking protected leave into account when evaluating an employee’s “impact,” which is a component taken into account when determining yearly bonuses, promotions, stock awards, and merit raises.
Out of its 221,000 employees worldwide, Redmond, Washington-based Microsoft employs around 6,700 workers in California, according to the lawsuit.
Microsoft has worked to diversify its higher echelons under CEO Satya Nadella and has also stepped up its response to harassment and discrimination-related concerns.
Over time, there has been a rise in the proportion of women holding partner, executive, director, and management positions. According to Microsoft’s most recent diversity report, women made up 31.2% of the workforce in core in 2023, up from 27.6% in 2019.
Microsoft said that it will amend its policies regarding sexual harassment and gender discrimination in 2022, in response to a vote by shareholders, after an external group’s research revealed problems with the company’s treatment of complaints.
The California lawsuit states that after requesting protected leave, workers have expressed concerns about reprisal. According to the settlement proposal, Microsoft refutes the agency’s assertions.
An response from a business representative to CNBC 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.” “Even though we think the agency’s claims are untrue, we’ll keep talking to, learning from, and supporting our staff.”
Microsoft will teach direct and second-level supervisors of employees in California as well as human resources staff members who handle incentives and merit raises as part of the settlement. Additionally, managers will be told not to take protected leave time into account when making “impact” decisions. Compliance will be supervised by APTMetrics, a consultancy.
Source : CNBC News
